Let me now turn to the issue of technology and cost. Before I speak my mind on the issue, let me make it very clear that RBI does not support the argument that cash transactions in this country will disappear rapidly or that all paper based transactions would turn electronic if the financial sector was to offer electronic transactions free of cost.
They aim at establishing discipline in the conduct of banking business and promoting corporate habits that are not only fair but also transparent to market participants. In this process, regulations do also help create conditions conducive to the sound development of financial markets. Often we come across rogue shareholders and rogue board members.