The emphasis on balance and gradual rebalancing, keeping in view the desired direction and the need to avoid any roll-back, is thus evident in regard to the external sector and is equally significant for progress in the financial sector -basically following the visionary design of Dr. C. Rangarajan, one of my predecessors. A few illustrations of gradualism may be in order.
First, the Reserve Bank was, till recently, de facto obliged to provide money to the government whenever needed, be it through overdrafts or through private placement of government debt with the Reserve Bank or through participation in the primary issues.