The major financial sector reforms introduced by Government of India in 1991 are as follows:
- The role of RBI was made to facilitator of financial sector to financial controller.
- Giving managerial autonomy to financial sector to take decisions.
- Promotional schemes to establish private sector banks both Indian & foreign.
- Increasing the foreign investment limit on banks to 50%
- No more nationalization of banks.
- Allowing the foreign institutional investors (Fils) like merchant bankers, mutual funds and pensions funds to invest in Indian financial market.