*  *  *  The significant transformation of the banking industry in India is clearly evident from the changes that have occurred in the financial markets, institutions and products. While deregulation has opened up new vistas for banks to augment revenues, it has entailed greater competition and consequently greater risks.
However, the issues involved are often complex and highly BIS Review 34/1998  ˝  -5-  political, and so far efforts to achieve “financial modernization” have been more piecemeal than I would desire. Nevertheless, deregulation has been a major force for change in the banking and financial services industries.