The programme also comes in the context of the proposed seminal change in the RBI’s banking supervision methodology and process this year. I refer to the introduction of the risk based supervision covering nearly half of the commercial banks in the first phase from the ensuing cycle onwards.
However, most of them have failed to emerge from their low growth trends, due mainly to structural factors. In addition, the international financial markets are showing higher volatility, owing to uncertainty surrounding monetary policy normalization by the US Federal Reserve and the possibility of a recurrence of financial and economic unrest in emerging countries, combined with the UK’s Brexit decision.