The liberalisation measures would need to take into account several imperatives, such as, consolidation of domestic banking sector; restructuring of Development Finance Institutions; and appropriate timing for the significant entry of foreign banks so as to be co-terminus with the transition to greater capital account convertibility while being consistent with our continuing obligation under the WTO commitments.
It is also necessary to examine several issues relating to implementation of the Press Note No.2 not in isolation but as part of overall reform paradigm of the banking sector.