There are two such stages: first, identification of the problems related to the current state of the economy; second, assessment of the potential effects of the alternatives for action. At the same time, we should bear in mind that decisions on individual items of public spending or revenue often involve such value judgements as a central bank should refrain from making.
Despite their inherent weaknesses in terms of low capital, poor management and intrusive policies of State, cooperative banks in India have successfully weathered several challenges during their century old existence and continued to grow in the competitive environment which emerged following the Economic and Financial Sector Reforms initiated in 1991.