The regulatory moves taken by RBI to solve the liquidity problem in the economy have almost proved successful. India's High Commissioner to the UK, Shiv Shankar Mukherjee said that RBI's regulatory mechanism has proved quite successful during the current global economic meltdown.
Mukherjee also cautioned the Indian financial institutions to be "vigilant." "Earlier RBI was criticized for being too prudent but its regulatory mechanism has stood the test of time and has now come for praise," he added.
HSBC's Managing Director Paul Thurston said that his bank was able to cope with the financial crisis due to their customer friendly approach. "We still have more deposits than loans and we stick to our strategy. Despite what is happening, we have just acquired a bank which is double our size in Indonesia. Our business is built on relationship," he said.
HSBC's Head of Multicultural Commercial Banking, Sandeep Sachdeva said that the bank's success lie on its traditional philosophy - belief in relationship and being global than others.
RBI's recent moves of cutting the rates at which it lends to commercial bank has signaled that it has moved from curtailing inflation to promoting the growth rate.
All these steps have helped India to overcome from financial trouble and the banking industry appreciates the decisions of our apex body.