Though the Indian banking system remained largely unaffected by the global financial crisis, we cannot pat ourselves on the back, for it was much to do with lack of product innovation and a comparatively lesser degree of integration with the global markets. The coming years, however, will pose big challenges for the supervisors as well.
The significant rise in interconnectedness of financial markets across jurisdictions, the growing complexities of banking products and services, introduction of newer delivery channels and the need for emphasizing on inclusion of the vulnerable and marginalized groups has significantly increased the challenges presented before the financial sector regulator/ supervisor. 27.