While the Government of India nationalized banking operations of few commercial banks in two tranches in 1969 and 1980; RBI took initiatives like laying down priority sector lending requirements for banks, formulation of the Lead Bank Scheme, establishment of Regional Rural Banks (RRBs-1975-76), Service Area Approach (1989), Self-Help Group-Bank Linkage Programme (1989-90), setting up of Local Area Banks and of late, Small Finance Banks and Payment Banks, all aimed at making available banking services to all.
We also need to do a much better job following up on our guidance in a coordinated global manner. Finally, we can use the leverage of Pillar 2 – the supervisory review process – to promote improvements in firm-wide governance, risk management, and controls, and to establish clear links to the assessment of capital adequacy.