Resolving asset quality issues in PSBs also has become little urgent ahead of plans for capital augmentation under the new dispensation, if we take into account the behavioural dimension, as both lenders and borrowers tend to be drawn towards taking extreme positions  BIS central bankers’ speeches  3  between ‘total risk aversion’ and ‘the temptation to take bigger gambles’ in the face of potentially weaker balance sheets.
This will change the dynamics of currency circulation in the country, reduce float in the system and allow banks and businesses to manage their liquidity more efficiently. It sets rolling the Instant Payments System, which will enable customers to effect transfers between any two accounts in any two institutions within seconds. Instant Payment services will also comprise instant direct debits and credits.