In retrospect, Dr. Reddy says that perhaps the trust that Reserve Bank placed in the commitment of MFIs was misplaced and, given the track record, the Reserve Bank should have insisted on enforceable regulation and not been content with an advisory role. Dr. Reddy’s observations lead to another very important tenet of corporate governance i.e.
Our approach has been and will continue to be to provide an agent who has exposure to the Rupee – resident or non-resident – with a range of derivative products to enable them to hedge their foreign exchange risks but expanding the range of products has to be gradual. 22.