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<h1>Capital adequacy strengthened under Basel-III phasing; government commits to adequately capitalize public sector banks while addressing asset quality risks.</h1> The speech emphasises strengthening capital adequacy through phased Basel implementation and government commitment to keep public sector banks adequately capitalised while addressing rising NPAs and market risks through tighter supervision; it also prioritises bank-led financial inclusion using technology and Business Correspondents, supported by targeted schemes, digital payment systems for direct transfers, and enhanced talent development in banks.