The existence of separate supervisory authorities to regulate different segments of the markets within a jurisdiction may create challenges in implementation of Basel II not only within a jurisdiction but also across jurisdictions – which would require effective cross-border supervisory cooperation and co-ordination.
The fifth challenge: the challenge of banking development and financial inclusion in Eastern India Banking development in the eastern region of the country, as measured by several parameters, is lagging behind the national average. Let me give some evidence to illustrate this. •  In March 2008, the all-India per branch population coverage was 15,400.