With the deepening of the foreign exchange market and increased turnover, income of commercial banks through such transactions increased significantly. Profit from foreign exchange transactions accounted for more than 20 per cent of total profit of scheduled commercial banks in the last 2 years.
In today’s CD Deshmukh lecture, he unraveled fifteen attributes for monetary policy architecture post-crisis. While each of these recommendations would need to be discussed and understood in the country specific context, some of them are clearly path-breaking and thought-provoking. First, his boarder definition of monetary policy also included financial regulatory policy.