In addition, there are some constraints in the conduct of monetary policy, in particular, the fiscal impact, predominant public ownership, prevalence of administered interest rate, etc. While these challenges and dilemmas persist in the Indian context, every effort is made by the RBI to meet the broader objectives set forth, from time to time.
Similarly, while the free movement of liquidity across borders is made possible by cross-border waivers, the practical application of these waivers is hampered by the remaining national prerogatives in the regulatory framework which allow national authorities to apply large exposure limits on intragroup lending and ring-fence liquidity.