Formation of an ‘umbrella organization’, has been approved to provide liquidity, capital, IT and capacity building support to UCBs. The exposure limits of the UCBs have been brought down to reduce credit concentration and the priority sector targets have been revised substantially upwards so that UCBs remain focused on their core segment – i.e., micro and small borrowers.
And fundamentals for household spending have improved with higher personal income and household net worth. Although activity in a number of emerging-market economies has slowed, the emerging world remains the engine of global growth. In particular, past tightening of policy and weaker external demand are slowing activity in China to a still-robust pace.