There is much greater focus now on improving the corporate governance set up through “fit and proper” criteria, on encouraging integrated risk management systems in the banks and on promoting market discipline through more transparent disclosure standards.
The policy endeavor has all along been to benchmark our regulatory norms with the international best practices, of course, keeping in view the domestic imperatives and the country context. The consultative approach of the RBI in formulating the prudential regulations has been the hallmark of the current regulatory regime which enables taking account of a wide diversity of views on the issues at hand.