Innovation in technology and worldwide revolution in information and communication technology (ICT) have emerged as dynamic sources of productivity growth. The relationship between IT and banking is fundamentally symbiotic. In the banking sector, IT can reduce costs, increase volumes, and facilitate customised products; similarly, IT requires banking and financial services to facilitate its growth.
•  Fourth, the monetary transmission mechanism in India is impeded because of a number of structural factors. Inflation targeting can be efficient and effective only after monetary transmission becomes streamlined. •  Finally, we need to manage the monetary fall-out of volatile capital flows that queer the pitch for a single focus monetary policy.