The Malegam Committee on Microfinance had also recommended a review of the PSL guidelines on the arbitrage argument – that tightened regulation on microfinance without corresponding tightening of other intermediaries that route priority sector credit may bias the flow towards the lightly regulated sectors. 18. In response, the Reserve Bank appointed a Committee under the chairmanship of Shri M.V.
Nair, former Chairman of the Union Bank of India, to reexamine the existing  BIS central bankers’ speeches  3  classification and suggest revised guidelines with regard to PSL classification.