Finance Minister Pranab Mukherjee today said the government was working in collaboration with the Rerserve Bank of India to address concerns over high costs and limited reach of banking services. Speaking in Mumbai today, as part of the centenary celebrations of the Central Bank of India, Mr. Mukherjee said, the cost of banking intermediaries in the country is high and bank penetration is limited to only a few customer segments and geographies. He said efforts are on to address this, in collaboration with the Reserve Bank of India, and with the active participation of the banking and non-banking financial entities.Mukherjee also said that there was a need to reflect upon possible flaws in our system and address them to withstand adversities. He said, there was a need to make our financial sector more competitive by enhancing efficiency and transparency. Pranab said, while greater competition is welcome, we have to guard against the competitive race to the bottom expressing hope that this perspective would guide the growth of Indian banking system in the coming years. The Finance Minister said that PSU banks were playing a very important role in India's economic growth and they constitute over 72 per cent of the banking sector assets in the country. He said that most of the financial sector policies in the past few decades were aimed at accelerating the penetration of the banking and financial services.To address the issue of capital constraints faced by the PSU banks, Mukherjee said the government had provided over 20,000 crore ruppes towards recapitalisation of public sector banks during 2010-11. He said, an additional amount of 6,000 crore rupees is also being provided for 2011-12 to enable the PSBs to meet the credit requirements of the growing economy.