which some countries have to go in order to regain competitiveness and to repair their balance sheets. besides, being part of a monetary union will help them – rather than make it more difficult – to do so, because the greater trade links they have, allow them to benefit from faster growth in well performing member countries. although monetary policy cannot be tailored towards the needs of specific countries or regions, national developments are to some extent taken into account when deciding on monetary policy measures. that is, for instance, the case when the governing council decides on its non - standard measures. indeed, the monetary transmission impairments we observe are located mostly in those countries most affected by the sovereign and banking crisis. it is therefore no coincidence that we kept these measures in place, although we raised interest rates. in that respect, some people ask me whether i see any conflict between raising interest rates and maintaining such flexibility in liquidity allotment modes. the answer is “ no ” : both conceptually and technically, i see no problems in raising rates while at the same continuing to provide banks with unlimited liquidity. from a conceptual point of view i want to underscore that these two types of measures are geared towards different, but complementary, goals. the monetary policy stance is signaled by our key interest rates and is set as a function of the outlook for price stability. the non - standard measures, in contrast, are designed to ensure that the transmission of the monetary policy stance to the rest of the economy happens as smooth as possible, which should in turn allow the governing council to deliver price stability over the medium term. hence, these measures are complementary to each other, rather than conflicting. let me conclude. the governing council has shown it will do whatever is necessary to deliver price stability, which means taking the necessary measures to avoid a “ great depression ” - scenario as we did in 2008, but also to raise interest rates if upside risks to price stability threaten to materialise. we do have the will and the tools – including non - standard ones – to cope with the challenges in front of us. the flexibility of our framework should, however, be no excuse to postpone necessary adjustments, both in the financial and nonfinancial sector. and although we see encouraging signs – for instance in terms of competitive adjustment in some countries –, i think there is still a lot of work to do. thank you for your attention. bis central bankers ’ speeches

in a position to not merely avail the offered services, 2 / 5 bis central bankers'speeches but are also capable of demanding preferred products and services suitable to their needs / choices. 14. the mudra is a case in point. while such a massive push would have lifted many beneficiaries out of poverty, there has been some concern at the growing level of nonperforming assets among these borrowers. banks need to focus on repayment capacity at the appraisal stage and monitor the loans through their life cycle much more closely. 15. the role and importance of the microfinance sector in our economy has also been steadily growing. according to the bharat microfinance report 2019 prepared by sa - dhan, mfis operate in 29 states, 5 union territories and 570 districts in india. the mfis are also expanding into newer territories for reducing their concentration risk. 16. tailored products for providing credit to those without a credit score, entrepreneurial and consumption credit, handholding, financial literacy, social occasion credits and insurance ( life and non - life ), are all waiting to be tapped in scale and size. limited forays have been made but are yet to achieve their full potential. 17. the rbi defines financial inclusion as the “ process of ensuring access to appropriate financial products and services needed by all sections of the society in general and vulnerable groups such as weaker sections and low income groups in particular, at an affordable cost in a fair and transparent manner by regulated, mainstream institutional players ”. the national strategy for financial inclusion ( nsfi ) 2019 – 24 has been framed by us. it gives the vision to make financial services available, accessible, and affordable to all citizens in a safe and transparent manner to support inclusive and resilient multi - stakeholder led growth. potential of microfinance 18. a major demographic change is taking place in our country with a huge and growing working population. there is a big chunk aspiring to grow into the middle class with the support of institutional credit. therefore, microfinance can play a big role in meeting their requirements and fulfilling their goals. 19. the credit needs of low - income groups range from emergency loans, consumption loans, business loans, working capital loans, housing, etc. in addition to credit, poor households would benefit from a combination of financial services, including savings, remittances, loans, microinsurance, micro - pensions, and the like. 20. in today ’ s world