Policy evaluation, however, is not a trivial task as it needs to answer three key questions: 1. Did the reform “cause” an outcome (attribution)? 2. Did the reform have similar effects across relevant markets, states of the world, or jurisdictions and regions (heterogeneity)? 3. Did the reform achieve its overall objective (aggregation/general equilibrium)? These questions cannot be answered by taking a purely national perspective.
The objective of setting up of small finance banks, like the payment banks, is also to further financial inclusion; however, it is sought to be achieved through a different set of strategies viz., (i) provision of savings vehicles primarily to unserved and underserved sections of the population, and (ii) supply of credit to small business units; small and marginal farmers; micro and small industries; and other unorganised sector entities, through high technology-low cost operations.