It has also charted out a course for entry of new private sector banks and also given a clear indication that foreign banks are encouraged to come by setting up a bank subsidiary. RBI has also given a carte blanche to domestic scheduled commercial banks (other than RRBs) to set up new branches in Tier 2 centres.
While global financial system still faces considerable risk, I think the time has come for banks in India to live with those risks by factoring those in and get to the task of providing banking services. Increased competition is desirable for banks as well as economy. Take the instance of the long-awaited reform of deregulating saving bank deposit interest rates.