Loans to priority sectors such as agriculture and SME sectors were overpriced so as to lend below the BPLR to presumably preferred customers such as large corporates. The lack of transparency in the operation of the BPLR also made it difficult to assess the effectiveness of monetary transmission from the policy rate of the Reserve Bank to lending rates by banks. 27.
Whether you share this view or not: we must be careful that we ourselves do not contribute to the hype cycle through the forecasts we provide, and that we continue to analyse what is happening with the required degree of openness and curiosity. 3.