At the same time, we wanted to inhibit the transmission of the interest rate signal from the short end to the long end as that  BIS central bankers’ speeches  5  would hurt flow of credit to the productive sector of the economy. So, we instituted an Indian version of “operation twist”. 37.
I must reiterate here that it is not the policy of the Reserve Bank to resort to capital controls or reverse the direction of capital account liberalization. Notably, the measures that we took did not restrict inflows or outflows by non-residents. II. Challenges for the Reserve Bank on the way forward  38. Now let me turn to the second part of my lecture.