Our goal is not just that poor households must have a bank account, but that the account must be effectively used by them for savings, remittances and credit. Our most ambitious initiative has been the “Business Correspondent” model or branchless banking which, leveraging on technology, helps reach banking services to remote villages at a low overhead cost.
As we have discussed with this Committee on previous occasions, the Board has sought to strike a balance between these benefits of monetary stimulus and the medium-term risks associated with the increase in the already high level of household debt. We have sought to steer a middle course, promoting sustainable growth in the economy.