These people find it difficult to join the formal financial sector. UCBs can take a lead in bringing these people into the ambit of banking. 44. UCBs should re-design their business model in this regard and integrate their financial inclusion plan into their annual business plans.
Recalibrating the programme's conditions ensures consistency with the broader monetary policy normalisation process. We are already seeing the impact of our policy decisions on financial and monetary conditions, which will support their transmission to real activity and inflation with the usual lags. Bank funding costs are increasing with market interest rates as monetary policy normalisation continues.