Furthermore, many elements of economic reform and underlying legislative framework need to be harmonized.
At the same time, it may not be necessary to wait for legislative framework to change to bring about some of the reforms or initiate processes to demonstrate usefulness of reform-orientation.
In fact, there are several examples of managing reform within constraints of law which need to be recalled.
For example, there are some enabling but not mandated provisions which may or may not be used.
Thus, RBI had shed its direct developmental role in the sense of money financing, by ceasing to operate on relevant provision and by and large, confining money creation for Government of India only.
Supplemental agreement to terminate automatic monetization (WMA) of government's deficit has been used, by way of a signed agreement between RBI and Government of India, though a legislative compulsion in still under consideration as part of Fiscal Responsibility and Management Bill.
In several cases, contracts with stipulated conditions have been framed in the absence of specific law governing such transactions.
Examples relate to regulation of Clearing Houses; operating current payment systems and functioning of electronic trading even before instructions under I.T. Act came into force.
Similarly, it has been possible to invoke prudential regulations over RBI regulated financial institutions to effectuate best practices in financial markets, though the legal compulsion as a regulation on all market participants may not be possible; the example of successes achieved are dematerialisation of Commercial Paper and Demateralisation of Debt instruments, brought about in the requirements on Banks and financial institutions.
There could also be use of incentives to conform though legal or formal regulation may be difficult.
Examples relate to valuation and accounting norms being performed by a self regulatory organisation and adopted by banks and proposals relating to information sharing with Credit Information Bureau pending legislative initiatives.
