We know that India's banks are currently so saddled with bad debt to insolvent borrowers, that they are reluctant to lend, regardless of RBI's rate cuts. This is stifling India's economic recovery and preventing any ripple effects from monetary stimulus.
But the advent of newer technologies is increasingly facilitating Peer-to-Peer lending and borrowing, and a potential for the future "Uber-ization of Finance", which could create its own impact on the lower rungs of India's economy.
http://www.wsj.com/articles/the-uberization-of-finance-1446835102
I'm wondering if this Uber-ization of finance could unleash economic potential currently bottlenecked due to the effects of cronyist lending practices and political interference. Shourie has of course called for a TARP solution, but the govt currently doesn't have the political capital to pursue this. Perhaps we need to look at other alternatives to TARP as well, and this may be one.
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