The paper has brought to the fore a case for re-orienting the existing banking structure to make it more dynamic and amenable to meet the needs of the economy and had suggested basic building blocks of the re-orientation exercise which inter alia included setting up of specialized / differentiated banks and conversion of Urban Co-operative Banks which meet the necessary criteria into commercial banks or Local Area Banks / small banks.
This also illustrates the flexibility of the framework, which I will discuss in more detail in the next section. Of note, as is apparent in the graph, the inflation outcomes in the past decade have been at the lower end of the distribution of outcomes over the period.