The development of a wide range of money and capital markets institutions and instruments enables substitution and access to a variety of purpose-fit saving and investment channels as monetary policy and conditions change; therefore sustained effectiveness of policy transmission in affecting market activity. A diverse and deep market also allows banks to better manage liquidity positions, hence the ability to effectively transmit policy.
For the study, 208 well-run co-operatives operating in 21 States were selected. Of these, 71 were operating under Parallel Self-Reliant Co-operative Societies Acts with the rest under respective State Co-operative Societies Acts.