With the enactment of the Banking Regulation Act in 1949, statutory liquidity ratio (SLR) requirement prescribed for banks emerged as a secured source for government borrowings and also served as an additional instrument of monetary and liquidity management. Inflation remained moderate in the post-independence period but emerged as a concern during 1964–68. 1969 to 1985: Credit Planning 10.
From the market's perspective, financial institutions overproduced goods and services that now have to be warehoused or liquidated. From the perspective of financial institutions themselves, the old business models may be in the process of being upended.