There are also the downstream, multiplier effects to consider, which could see a bigger boost to the rural economy than the $ billion payout increase alone would suggest. But let’s not forget the cost side of the equation. Farmers often remind us that the cost of producing milk has increased substantially over the last few years.
There has been positive response on the part of banks with respect to this relief measure, especially on the use of loans to MSME as alternative compliance with the reserve requirements (RR). In fact, around 90 banks (mostly rural banks) have started using loans to MSMEs as an alternative mode of compliance with the RR.