While this requirement already existed, transparency was imparted by the guidelines. On July 2, 2004, a comprehensive policy framework for ownership and governance in private sector banks has been placed in the public domain, by the RBI in the form draft guidelines, for wider public debate.
However, taking into account the protracted upward deviation of M3 growth from the reference value of 4 1/2% and the still robust growth of credit to the private sector, caution continues to be warranted with regard to the upside risks to price stability stemming from the monetary side.