*  *  *  The topic of this conference – the formulation and conduct of monetary policy in a lowinflation environment – is timely indeed. From the late 1960s until a decade or so ago, bringing inflation under control was viewed as the greatest challenge facing central banks around the world.
There are no clean solutions here given the kind of incentives in the system, and given the absence of an operational bankruptcy code in India. Therefore, the RBI has had to adopt a pragmatic approach to the clean-up, creating new enabling processes. The RBI’s approach Our first task was to make sure that all banks had information on who had lent to a borrower.