While during the last six decades, the Indian banking system has indeed come a long way traversing an arduous and tortuous path, it would perhaps be appropriate to assess in retrospect and take stock of how far we have come from where we started and what more remains to be achieved.
Beyond being necessary to fulfil our price stability mandate, some have expressed concerns that our accommodative policy is contributing to lower nominal interest rates on certain assets, such as bank deposits, or that it is fuelling asset price exuberance. Let me address those concerns in turn.