We need to build on its strengths and extend it to vast areas which are inadequately covered by both banking and micro-credit entities. Micro-finance, broadly defined, needs to be explored in the light of the new paradigm described. RBI and NABARD recognise the growing importance of micro-finance and are committed to enable its healthy growth.
For details, see Yagi, T., Furukawa, K., and Nakajima, J., "Productivity Trends in Japan: Reviewing Recent Facts and the Prospects for the Post-COVID-19 Era," Bank of Japan Working Paper Series, No. 22-E-10, July 2022. 2 See footnote 1 above.