The model was also successful in providing solution to the twin problems faced by banks, i.e., low recovery of loans in rural areas and high transaction costs in dealing with small borrowers at frequent intervals. One of the major positive impacts of the SBLP was social and economic empowerment of the membership.
We subscribe to the general principles and objectives of the international reform agenda, but we are also pragmatic in our approach to their adoption. While we are in agreement with the goals, we believe that implementation must follow the principle of proportionality to country-specific circumstances.