Unless there is product innovation, the customers would not have a choice of products. And unless the customers express a need there is no incentive to introduce new innovative payment products. However, it does not mean that every innovation would be embraced by the public, providing the innovation with a critical mass and sustainability that would make it a standard practice.
The RBI took the view that although the first incidence of a food shock is outside the purview of monetary policy, second round effects such as on inflation expectations and especially, spillovers impacting the rest of inflation are! It also judged that headline CPI inflation is more easily communicated than an exclusion measure stripped of its most salient components.