February 4, 1984 tives and financial manipulation. Commercial banks exercise little authority in ensuring efficient industrial management. Many questions remain unanswered: should industrial incentives (backward areas, investment allowance') apply to goods in sellers1 markets, like cement? Should credit for inventories of finished goods, even though these be with manufacturers, be treated as industrial advances (which is what the RBI allows) rather than as commercial advances? So also, if banks and finance institutions were to exercise their right of independent audit of their borrowers through detailed inventory and management audit, they would not only help improve management practices but also provide a check on parallel economy transactions. This should be the banking function