'RBI's regulatory mechanism stood the test'

LONDON: Reserve Bank of India's regulatory mechanism has proved quite successful during the current global economic meltdown, India's High Commissioner to the UK, Shiv Shankar Mukherjee has said.

Recalling Prime Minister Manmohan Singh's suggestion, Mukherjee, however, cautioned the Indian financial institutions to be "vigilant."

"Earlier RBI was criticised for being too prudent but its regulatory mechanism has stood the test of time and has now come for praise." Mukherjee said at a Diwali celebrations organised by HSBC bank last night.
Describing the strategy to cope with financial instability, HSBC's Managing Director Paul Thurston claimed that the bank has sustained the global crisis due to its customer friendly approach.

"We still have more deposits than loans and we stick to our strategy. Despite what is happening, we have just acquired a bank which is double our size in Indonesia. Our business is built on relationship," he said.
Sandeep Sachdeva, HSBC Head of Multicultural Commercial Banking, attributed the success of the bank to its conservative philosophy -- belief in relationship and being global than others.

In his Diwali greeting, Mukherjee said "Diwali in India is a national festival" and it is celebrated by all symbolising victory of good over evil.