Says M S Verma, Chairman of SBI: "The RBI, as regulator, has taken a dynamic view of the domestic and international financial situations. The long term measures which have been announced by the RBI today will have a positive impact on the investment scenario, revival of credit flow and above all the basic perception about the overall economic situation."

Bank of Baroda Chairman K Kannan said the credit policy was aimed at making the Indian financial system more stronger. He called the policy an advance notice given to the banking sector to make it progressively better. "It is a long-term policy not a short-term one," he said about the stricter norms.

"Fire fighting equipment has to be in place. But that doesn't mean there is going to be a fire".

StandardChartered CEO, Martin Fish said the policy has made an attempt to strengthen the Indian financial system and in the process, make India an attractive destination for foreign investors.