In the corporate sector, deleveraging was facilitated and high cost debt could be replaced, reducing vulnerabilities and preparing the sector to participate in the ongoing recovery. Abundant liquidity and the RBI’s measures enabled a quick and full transmission of policy rate cuts to deposit and lending rates, easing the cost of funds for bank clientele.
In addition, there may be ways to more effectively incorporate community engagement into the process—for example, by having the banking agencies develop a joint community contacts database to facilitate access to information from local community stakeholders.