In such an environment, the use of monetary policy is not the right instrument to address financial imbalances, and may lead to substantial deviations of aggregate output and inflation from their desirable levels. This is particularly so in a currency union where monetary policy affects the entire region, but financial imbalances may be local in nature.
However, it is essential that PPI issuers are in a position to deliver the requisite trails. In some of the cases we have observed there is no proper system to track the card issuance let alone system for tracing the transaction trails.