By now, two thirds of the IMF membership has participated in these reports, assessing their compliance with internationally recognised standards and codes. The G20 also contributed to the identification of 12 major standards, on which global efforts are now concentrating. These major standards include banking supervision, corporate governance, fiscal transparency, monetary and financial policy transparency, and securities regulation.
Reserve Bank’s efforts to contain the Rupee volatility in turn resulted in large Rupee liquidity which had to be sterilised at considerable fiscal cost lest inflationary pressures became unmanageable. In the circumstances, the regulatory framework discouraged borrowing by Indian companies. I don’t need to amplify that this measure was in the greater interest of the economy including that of the companies.