I must emphasize here that the new Guideline has been finalized taking into account the specificities of the local context. Let me now run you through the broad principles underpinning the Guideline.
India, with its strong internal drivers for growth, may escape the worst consequences of the global financial crisis. Indian banks have very limited exposure to the US mortgage market, directly or through derivatives, and to the failed and stressed financial institutions. The equity and the forex markets provide the channels through which the global crisis can spread to the Indian system.