The RBI is one of the few Central Banks across the globe which has taken upon itself the mandate for developmental banking- be it financial inclusion, training of bankers to render better customer service and not only providing reporting software to banks but also training on how to use these packages for best output.
Second, instead of increasing the pressure for structural reforms and policy adjustments needed to strengthen competitiveness in the periphery, market forces acted in the opposite direction. The markets mis-priced credit risk, underpinning large capital flows into the periphery and reducing interest rate spreads.