Over the years, we have moved away from the ‘mandatory-credit regime’ where force-feeding of targets to highly regulated commercial banks was the norm; towards a more open and ‘market led’ model where State bank has adapted itself into the role of a facilitator and developmental partner of financial institutions to accelerate the growth of agriculture finance in its natural eco-system. 7.
It would not be a substitute to notes and coins but to private bank accounts. It would therefore rather open a highway to bank runs, challenging financial stability, unless the amount allowed would be limited to an extent where it could not serve useful transactions purposes.