Looking at the numbers involved, there is no doubt that banks should look at technology based solutions and low cost delivery mechanisms that will reduce transaction cost of such services with the volumes required to make such a model sustainable. iv. For all borrowers where the principal amount is less than Rs 25000, banks have been asked to offer a one time settlement scheme.
A more accommodative policy has the usual benefit of lowering expected unemployment and thus reducing the expected shortfall term in the objective function.If, however, it also raises the conditional variance of the unemployment rate via an elevated-FMV channel – thereby increasing the risk term in the objective function – then there is a cost to be weighed alongside the benefit.