The Reserve Bank of India (RBI) issued an advisory note to Pubic Sector Banks (PSBs) for maintaining a Credit to Deposit ratio (CDR) of 60% in rural and semi urban branches continuously to reduce inter-regional imbalances in credit delivery. This note provides a critique of CDR as a yardstick of measuring bank commitments for serving the poor, instead it suggests to develop an alternative measure that calculates credit as per utilisation, which gives a far better picture of credit usage. It also proposes to build enabling environment for utilising the vast banking network in India, which provide unique opportunity to achieve the MDGs.

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