The banking related functions such as issue of license to start new banks, or branches, matters relating to interest rates, policies on loans and investments, prudential norms etc. are regulated and supervised by the Reserve Bank of India. It was often our experience that the effectiveness of regulatory and supervisory measures got diluted because of inadequate response from State Government.
The purpose of my visit to New York in this frigid season is to commemorate the 100th anniversary of the Bank of Japan’s representative office. Some of you might feel disinclined to listen to me, as central bankers tend to harp on the same string.