When this process is completed, the rate of economic growth should pick up to something in the neighborhood of the growth rate of the economy's potential. Inflation I believe that a path for output like the one that I have just described is likely to be associated with a gradual decline in core inflation from the elevated levels of last spring and summer.
Hence, while setting up of captive NBFCs is a commercial decision, the risks arising out of the business model of such captives need to be adequately addressed and hence the review of guidelines, requiring a higher Tier I Capital.