In a financial system, where banks play a dominant role in non-banking activities also, the transmission of monetary policy through both credit and monetary channels is also impacted in this environment. In brief, the operation of monetary policy in India has to be oriented around the predominantly public sector ownership of the banking system.
Securities secondary markets may require prompt interventions by authorities to ensure their stability and functionality. This can only happen if a network between competent authorities for the efficient and timely exchange of information is in place. •  Securities clearing and settlement systems fall under the competence of both central banks and securities or banking supervisors and thus deserve joint consideration.