Indian Economy
Deficit financing leads to inflation in general, but it can be checked if

only aggregate demand is increased
All of the listed here
government expenditure leads to increase in the aggregate supply in ratio of aggregate demand
all the expenditure is denoted national debt payment only

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Indian Economy
In pursuance with the recommendations of Narsimham Committee, the RBI has framed new guidelines

to lend more easily for industrial development
to reduce the freedom given to banks to rationalize their existing branch network
to govern entry of new private sector banks to make the banking sector more competitive
to setup more foreign exchange banks

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