Currently, there are acute policy dilemmas arising from global food and energy prices as also from financial market turbulence that need to be factored-in in evolving appropriate policy responses. Supervision of banks In recent years, partly reflecting the buoyant economy, credit growth has been very high, particularly, in select segments and the asset prices have been accelerating.
The RBI made it clear that while it does not have a view on the market valuations, it would like to sensitise the banking system to the potential risks of rapid escalation in prices.