The objective has been to ensure that there are no avoidable uncertainties in policy, while mitigating undue pressures on the functioning of markets without undermining market efficiency. A robust financial system is often characterised by smooth and secure payment systems and a word here about the several initiatives undertaken by RBI towards lifting the Indian payment system to global standards would be in order.
This suggests also that future formulae will not be as simple, either as the 3-months import rule or the Guidotti/Calvo Rule but will become increasingly complex. In thinking about this, I was reminded of the similarity of this process with the development of Basel Il guidelines on Banking Supervision.