Question

What are your views on the reforms introduced in the financial sector under the New Economic Policy?

Answer 1

Financial sector includes financial institutions such as commercial bank, investment banks, stock exchange and foreign exchange market.
The following reforms were initiated in this sector:
(i) The banking sector was opened for the private sector. This led to an increase in competition and expansion for services for consumers.
(ii) RBI's role underwent a change from a 'regulator' to a 'facilitator'.
These reforms were much needed and subsequent to these changes, this sector has witnessed tremendous growth and helped in the development of the economy as a whole.