At least in a large country like India we are talking about retail payment systems which are quite significant. Let me state a few numbers. We clear on a daily basis approximately 4.5 million cheques, operate nearly 2 million person to person electronic fund transfers, handle around 1.5 million bulk payments i.e. one-to-many and many-to-one payments.
But they also call for easier monetary conditions when demand is weak, leaving slack in the economy. Monetary policy targets focused on inflation were initially developed to help reduce persistent high inflation in an orderly manner. But I believe that such targets continue to provide the best framework for the conduct of monetary policy, even at low rates of inflation.