In fact, as of end March 2007, there were already 43 rural and cooperative rural banks offering electronic banking services particularly mobile phone banking. This lowers transaction costs, increases productivity, minimizes cash-on-hand risk, and increases over all accessibility of financial services.
Domestic price pressures as measured by the core inflation rate, which is the inflation rate with the most volatile components like energy and food stripped out, is also low. And if inflation is persistently weak, it becomes a headache for monetary policymakers. For if inflation stays too low for too long, there is a mounting risk of de-anchoring inflation expectations.