According to financial experts, including RBI Deputy Governor M Rajeshwar Rao, India is on track to become a strong global player as a result of strict financial regulations. Despite global turmoil and monsoon risks to growth, the RBI Deputy Governor said India was in a "sweet spot" for robust growth and that developing credit markets was critical.

Rao and other financial experts spoke at IIM Kozhikode's 'First Annual Seminar on Banking Regulation, Intermediary Soundness, and Systemic Stability' on Sept 4, according to a press release from the institute. To address credit risks, Rao advised financial intermediaries to make credit risk a core component of their strategies.

He called for a framework based on five elements of Ms -- measuring, monitoring, managing, mitigating, and migrating, the release said.

Rao said that for risk transfer or migration, the role of markets was extremely important as a deep and vibrant market to offload credit exposure could mitigate credit risk. He said that the credit market needs to be more "nimbler".