Other financial sector policies will have to be implemented for balancing numerous considerations such as growth imperatives, flow of credit to disadvantaged and preferred sectors, consumer protection, financial inclusion and equity, etc. At times, it becomes extremely challenging to balance these considerations and, if adequate care is not taken in designing and implementing the other financial sector policies, financial stability may be adversely affected.
Therefore, it is important that a set of sound financial sector policies (including prudential policies) backed by sound legislation must be adopted to deliver the various objectives – growth with equity in the backdrop of financial stability. II.