Finally, it is also important to remember that, as in the case of other EMEs, the country’s macroeconomic position and financial stability are still subject to challenges, particularly in what is likely to remain an uncertain and volatile external environment.
By allowing the banking system to offer new products and services such as agriculture credit, SME financing, mortgage loans, automobile leasing, personal loans etc. a new vista has opened up. Commercial banks that were always hesitant to channel credit to agriculture sector are now the single most source of agriculture financing. This year almost 1 million households will receive about Rs.