Consequently, banks will have to contend with non-banks as well as developments in financial markets, apart from competition among banks themselves. The second message, which Dr Jalan gave, is that the supervisory/regulatory aspects are no longer matters of domestic interest alone since they are now evaluated internationally. This means that our supervisory and regulatory standards will have to get aligned to global standards.
This again is not a very soft message from the Governor to the banking community. The third message, which was more in the nature of a clarification, was that this new reality would require banks to pay enormous attention to their internal management. And in internal management, he did recognise that an important input that banks really have is that of human resources.