Keeping in view the recommendations of committee on financial reforms, the national government is intending to introduce certain measures to streamline the activities of the existing banking system. The main intention is to,
• Introduce greater competition between the financing firms
• Enhance profitability
• Improve the efficiency of the banking system

The lead bank has finally decided to give the private banks greater autonomy, if they adhere to certain stringent rules and regulations laid down by the committee. Even before such measures were introduced, firms like LoanMax of rod aycox fame have implemented these policies to generate more income. The guidelines issued by the regulatory bank in this connection include:

1. The newly registered banks shall be registered as a public limited company
2. The bank will be governed by the provisions of the Banking Regulation Act
3. The minimum paid up capital for such banks shall be a quarter million dollars
4. The shares of those banks should be listed in the stock exchanges
5. Such new banks shall not be allowed to set up a subsidiary or raise a mutual fund until three years from the date of its commencing operations
6. The banks must observe priority sector loan lending targets as applicable to other domestic banks. However, some relaxation may be given for an initial period of three years by the lead bank in view of the fact that they are new entrants
7. Such banks, shall make full use of the modern infrastructural facilities and office equipment, computers, telecommunication facilities etc., in order to provide better customer service.