• refrain from intervening in the business and personnel policies of
financial institutions;
• abstain from any interventions in the operational autonomy and
management of financial intermediaries, both public and private.
Reformed public sector development banks or specialized agricultural
banks, originally created as an arm of the government to further rural
development, can still play a role in rural financial markets by operating
as effective and viable fully-fledged rural banks. They may set up their
own network of rural branch offices, and/or alternatively may act as a
refinancing or apex (wholesale) body for local financial intermediaries
that interface directly with the rural population. Developments towards
a more effective rural financial intermediation, when fully adopted, will
allow local savings mobilization and demand-led agricultural and rural
lending operations in a more positive market setting