We are fully aware of the importance of such operations, but one has to also keep in mind that they can only be used to “buy time.” A central bank’s operations to “buy time” may help the government to garner time to build a public consensus on the need for fiscal consolidation and gain the credibility of market participants for a consolidation plan.
There is a big chunk aspiring to grow into the middle class with the support of institutional credit. Therefore, microfinance can play a big role in meeting their requirements and fulfilling their goals. 19. The credit needs of low-income groups range from emergency loans, consumption loans, business loans, working capital loans, housing, etc.