The Indian approach to financial sector reforms, so far, has been driven by the predominant objective of enhancing the role of finance in promoting growth and economic development,  4  BIS central bankers’ speeches  while preserving financial stability, which is equally critical for sustained economic progress.
While balancing the goals of efficiency and stability in introducing reforms, the Reserve Bank has moved towards deregulation of interest rates, promoted development of markets, and strengthened the legal infrastructure to facilitate better enforcement of financial contracts.