The correct answer ensures credit to PSUs. The short term macroeconomic priorities of the Reserve Bank as per the Annual Report of RBI, 2014-2015 are:-Focus on bringing down inflation in line with the proposed glide path. Work with the Government and banks on speeding up the resolution of distressed projects and cleaning up bank balance sheets. Ensure banks have the capital to make provisions, support new lending, and thus pass on future possible rate cuts. Additional InformationThe Reserve Banks Annual Report informs the people of India on what RBI intended to accomplish during the past year and what was actually done. In Annual Report, RBI also lays out proposals for the coming year. Under the Medium-Term Challenges a regulatory view, fashionable in the past, was that the pace of regulatory reforms had to be limited by the capacity of our banks, especially our public sector banks (PSBs). The current stress in the banking system suggests that the real economy will not wait for the banking system, and a slow pace of reform could lead to greater, rather than lower-risk residing in the banking system. Financial sector reforms need to move on many fronts.