The panel has also recommended mergers of major PSU banks if they are unable to raise fresh equity because of the 51% lower limit on government shareholding. This is a second-best strategy, but with a limited political appetite for wholesale banking reform in the near future, this may not be a bad strategy to begin with. The committee has importantly endorsed the setting up of an independent debt management officenow, the process ought to gather pace. The report, however, must also be viewed in a broader context, incorporating a view of the good times once they return. India still remains grossly under-bankedonly 40% of people have a bank accountand a reluctance to reform and liberalise the system is partially responsible for this. This must change. Also, let us not forget that we are nowhere near as liberalised as western banking and finance, so we have plenty of room to reform without being what some critics would call overliberalised. India even has the chance to liberalise with new standards of regulation that are likely to be developed in the aftermath of this crisis. The last point is crucial. RBI cant argue that the system needs no change because banks here havent gone bust.