From the Reserve Bank of India, what I would like to add to what Mr Narayana Murthy has said, is that we in the RBI are getting ready with technology and we are already going ahead with computerisation of the Public Debt Office. In about 18 months, we will be ready with a Real Time Gross Settlement System (RTGS).
There are other (conventional) tools to use if tightening is deemed necessary, including: raising interest rates even with a large balance sheet, increasing reserve requirements, using reverse repo operations to drain excess liquidity. What is important is to make sure predictability is safeguarded by presenting a normalisation sequencing roadmap, which allows the balance sheet to shrink passively by holding the assets purchased to maturity.