to the macroeconomic crisis, a programme of stabilisation and structural adjustment was initiated in july 1991, with wide ranging reform measures encompassing the areas of trade, exchange rate management, industry, public finance and the financial sector. fiscal correction, exchange rate adjustment, monetary targets and inflation controls constituted the immediate measures for macroeconomic stability. these measures were supported by structural reforms in the form of industrial deregulation, liberalisation of foreign direct investment, trade liberalisation, overhauling of public enterprises and financial sector reforms. apart from aiming at restoring the economic stability on both domestic and external fronts, the economic reform programme strived towards achieving a higher growth trajectory through increased levels of investment and improvements in productivity, efficiency and competitiveness. structural reforms aimed at reorientation of the economy from a centrally directed command and control economy to a market oriented one to foster greater efficiency and growth. this was done by introducing greater competition in the economy through progressive internal deregulation accompanied by external competition promoted by foreign direct investment and trade liberalisation. the reform measures had sectoral dimensions as well. beginning with the industrial policy of 1991, reforms in the industrial sector were undertaken with a view to remove distortions in the resource allocation and improve competitiveness of indian industry. the reform measures included removal of industrial licensing, reduction in the number of industries reserved for the public sector, abolition of restrictions on investment and expansion under the monopolies and restrictive trade practices ( mrtp ) act, 1969, automatic approval of foreign investment, elimination of quantitative import restrictions on intermediate and capital goods and steady reduction in protective customs tariffs. these measures created a favourable environment for industry to upgrade its technology and build - up capacity in order to cater to growing domestic and external demand. a series of policy initiatives were undertaken in bis central bankers ’ speeches agricultural sector as well. these included, inter alia, replacement of quantitative controls by tariffs, partial decontrol of fertilizer prices, removal of bottlenecks in agricultural marketing, relaxation of restrictions of the essential commodities act, 1955, replacement of the revamped public distribution system ( rpds ) with targeted public distribution system ( tpds ), and establishment of rural infrastructure development fund ( ridf ). moreover, price reforms improved terms of trade for agriculture. also, exchange rate and international trade reforms improved the incentive structure facing agriculture. several initiatives were undertaken for the development and reform of financial markets, particularly since the 1990s. the reforms in various segments of financial markets such as money

efficient manpower will not only stem from domestic institutions but also from foreign institutions / countries ; and not just from the banking industry but from other financial / non - financial sectors. the challenge before indian banks is, therefore, to revitalise themselves by hiring the right talent, investing in training and bringing about a vibrant transformation in their dna. bis central bankers ’ speeches ( iii ) technology to be more customer focused most banks are already on core banking systems ( cbs ) which covers banking operations pertaining to deposits, withdrawals, credit delivery, back - office operations, etc. banks need to look beyond core banking to harness the benefits of technology. cbs could provide inputs for developing customised products based on customer database. it would help in planning product delivery and service at selected / multiple delivery points, better customer relationship management and building lasting customer relationships which will translate into higher revenues. technology needs to be more customer focused than employee or vendor focused. in case of glitches, the rectification must be swift to instill faith and confidence in the system. it is only the more agile and innovative players who will stay ahead in the game. along with it solutions arise allied issues such as it security, governance and audits. gaps in it security could make banks vulnerable to data piracy, fraud and operational risk leading to reputation risk and erosion of customer confidence. ( iv ) focusing on mis and information literacy mis is an inseparable part of bank ’ s decision making process. the integrity and timeliness of data is critical in formulating the bank ’ s capital planning, business strategies, reviewing achievements vis - a - vis targets, formulating course correction exercises where required, feeding data into stress tests and importantly, taking action on the outcomes. this brings us to technology support for decision making. banks have made huge investments in technology, which should be translated into better mis through decision support systems and yield returns on investment by providing economical, affordable and customised customer centric banking solutions. the use of technology should not be seen as an end in itself but as a means to an end. ( v ) business strategy and vision the role of banks ’ boards would become increasingly crucial in the next decade in view of the looming competition. the board would need to have a clear vision for the bank, a strategy to achieve its objectives, both medium and long - term, and a well laid out long - term plan. banks would need to look beyond their existing customer base and large corporates and reach out to rope