The move to increased market borrowing has also been useful in providing market signals on the cost of borrowing. Finally, coordination between monetary policy, domestic debt management, and financial sector policies in the Reserve Bank and the Government has also helped in this regard. VII.
Strengthening of financial sector/banks  The financial system in India, through a measured, gradual, cautious, and steady process, has undergone substantial transformation. It has been transformed into a reasonably sophisticated, diverse and resilient system through well-sequenced and coordinated policy measures aimed at making the Indian financial sector more competitive, efficient, and stable.