Date:19/08/2007 URL: http://www.thehindu.com/2007/08/19/stories/2007081960201200.htm

National

Panel on financial sector reforms set up

Special Correspondent

Raghuram G. Rajan

NEW DELHI: The Planning Commission on Friday announced the setting up of a high- level committee on financial sector reforms under the chairmanship of Raghuram G. Rajan. The 12-member committee is expected to outline a comprehensive agenda for the evolution of the sector, indicating especially the priorities and sequencing decisions which the Government must keep in mind. It is to submit its report by March 31, 2008.

The committee, according to an official statement here, will identify the emerging challenges in meeting the financing needs of the economy in the coming decade as also pinpoint sectoral reforms that will allow those needs to be more easily met by the financial sector.

The panel will examine the performance of various segments of the financial sector and identify changes in the regulatory and supervisory infrastructures to enable the financial sector to play a better role while ensuring that the risks are contained, the statement said.

The terms of reference of the committee also include the identification of changes in other areas of the economy. This includes the conduct of monetary and fiscal policy, the operation of the legal system and the educational system which could help the financial sector to function more effectively.

Apart from Mr. Rajan as the chairman, the members are Suman Berry, Director-General NCAER; Uday Kotak of Kotak Mahindra Bank, Rajeev Lall of IDFC, Vijay Mahajan, Chairman, Basix; Zia Modi, Senior Partner, AZB Partners; O.P. Bhatt, Chairman, State Bank of India; K.V. Kamath, Chairman, ICICI Bank; Chitra Ramakrishna, Deputy MD, National Stock Exchange (NSE); R. Ravimohan of CRISIL; and J.R. Varma of Indian Institute of Management, Ahmedabad. R. Sridharan, Adviser (FR), Planning Commission, will be the Convener of the committee.