Banks' Performance: Limited Achievements

Banks have not paid sufficient attention in the post-reform period to the societal goals that they were expected to pursue. For this, at least in part the Reserve Bank must take the blame. Its system of monitoring the banks' performances under various regulations is at best inefficient and at worst biased. While it makes a rigorous review of prudential norms attained by banks, it does not attempt to evaluate and enforce targets set for societal goals.