Goals of banking sector reforms are defined as follows:

i)To correct and improve the macro-economic policy setting within which the banks operate. This involves monetary control reforms including rationalisation of interest rates, redesigning direct credit programmes, and bringing down the levels of resource pre-emption.

ii) To improve the financial health and condition of banks by recapitalising and restructuring the incentive system under which banks operate.

iii) To establish the related institutional infrastructure to assist in and of monitoring, audit, technology up-gradation and legal support.

iv) To improve the level of managerial competence and the quality of human resources by reviewing the policies relating to recruitment, training, placement, etc.

v) To improve access to financial savings.

vi) To reduce intermediation costs and distortions in the banking system; vii) To promote competition by the establishment of a level playing field allowing for free entry and exit of operators in the sectors under a regulatory framework.

viii) To develop transparent and efficient capital and money markets.