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RBI’s role prior to liberalisation was to control and regulate the financial sector which comprises of financial institutions such as commercial banks, stock exchange, investment banking, foreign exchange or forex as it is called now. With the liberalisation and reforms undertaken for finance sector RBI assumed the role of a facilitator in order to allow financial institutions to make their own decision. This led to the entry of foreign players. The main objective of financial reforms was to obtain foreign investment and participation from private sector, to increase competitiveness in finance sector.