In a way, such a shift was a logical outcome of measures taken over the reform period since the early 1990s.
Operating Procedures In the pre reform period prior to 1991, given the command and control nature of the economy, the Reserve Bank had to resort to direct instruments like interest rate regulations, selective credit control and the cash reserve ratio (CRR) as major monetary instruments. These instruments were used intermittently to neutralize the monetary impact of the Government's budgetary operations.