It is regrettable to note that despite the improvements made in operational efficiency, the problems of disparities in Indian banking and low penetration continue unabated. 27.
In other words, we should amend or rebalance certain existing buffer requirements rather than creating additional buffer requirements. Second, we need strong governance to ensure that capital buffers are released (and subsequently replenished) in a consistent and predictable way across countries in the face of severe, system-wide economic stress.