This scheme helped in preventing the problem of pre-emption of scarce bank reserves by a few large borrowers and enforcing a measure of financial discipline on them. 15. As is evident from the above, in the initial phase of scarce credit, Reserve Bank used credit management techniques to ensure efficacious use of credit.
Evaluation of the effects of regulatory reforms is an important aspect of any regulatory reform process. As you might be aware, there are some jurisdictions that have already signalled to alter post-crisis reforms should they find that they have unintended consequences to their financial systems. It is an issue that we cannot ignore.