We all know the truth that there never will be a completely appropriate time for such reforms. At least, today we have the comfort that banks have substantially got rid of the asset-liability mismatches that were created earlier by credit growth outstripping deposit growth.
As regulators, our job is to support financial stability and the health of the banking system, but not to unduly protect banking business at the cost of welfare of those who consume financial services. Intermediation costs in Indian banking have stayed high. We need to develop new paradigm for creating a competitive edge in the Indian banking that drives down intermediation costs.