Most people are aware of RBI’s counter cyclical policies that won us accolades in our management of the crisis. However, we have also taken several measures to address systemic risk arising out of interconnectedness amongst financial institutions such as placing prudential limits on call borrowing and lending, limits on banks cross holdings of bank’s ownership, limits on exposure to single and group borrowers, etc.
The further use and development of a macro-prudential policy toolkit to manage systemic risk is actively being pursued within the Bank. 6  BIS central bankers’ speeches  Concluding remarks Recent experiences have clearly demonstrated that resolving a financial crisis is complex and costly. This holds true regardless of what caused the crisis, and regardless of the solution.