Various mechanisms have been found to ensure an environment supportive of sound corporate governance mentioned in BIS Document (BIS September 1999) by not only pursuing legal and policy changes with the Government, but also close interaction with auditors and banking industry associations. Random thoughts The Indian experience provokes some thoughts on a few fundamental issues in regard to PSBs and corporate governance.
Changes in fixed reverse repo/repo rates set by the RBI from time to time for the conduct of its LAF, under which the central bank conducts daily auctions for the banks, have emerged as the main instruments for interest rate signalling in the Indian economy. Institutional mechanisms have been evolved in parallel to improve transparency and communication of monetary policy.