Starting with the nationalization of banks (1969/1980), outlining priority sector lending requirements for banks, introduction of the Lead Bank Scheme, establishment of Regional Rural Banks (RRBs-1975–76), Service Area Approach (1989) and Self-Help Group-Bank Linkage Programme (1989–90), all these initiatives were taken with an underlying objective of taking banking services to the masses and making them participate in the developmental process of the economy.
These and other specific actions have contributed positively to expectations about economic growth despite the uncertainty on the global economic prospects. Declining commodity prices have contributed to easing of headline inflation since mid 2011, reaching 6.20 percent by the end of the year, slightly above the top limit of the Monetary Board’s target of 5.0 percent plus minus 1 percentage point.