Listing of almost all public sector banks is another major reform in this regard. Besides, prudential regulations have been strengthened in line with Basel I standards and are now in process of being updated to Basel II standards.
An effort has been put in for phased implementation of international best practices such as, CRAR, provisioning and income recognition norms, exposure limits and measures to strengthen risk management. The introduction of partial private sector ownership in public sector banks and their consequent listing has been extremely important for market orientation of these banks and transparency in their accounts and operations.