A day after lowering SLR, the mandatory government bond holding requirements for banks, Reserve Bank of India Governor, Raghuram Rajan today said, RBI is all set for reducing pre-emptions over a longer horizon for more efficiency in the financial system. The broader, longer term programme is of five years. He said, the amount of pre-emptions in the system should be reduced, including SLR and Priority Sector Lending (PSL) process should be made more effective. RBI Governor was speaking during the customary post-policy call with analysts in Mumbai. Rajan drew attention towards the Nachiket Mor committee on PSL and said that the RBI is trying to make the entire process more effective. He added that these are necessary changes in the system and should not be seen as tied to the monetary cycles.Rajan conceded that yesterday's 0.50 per cent cut in Statutory Liquidity Ratio-SLR is not going to have any real impact in the immediate future and added that banks will continue carrying excess SLR for the foreseeable future. The cut in the SLR holding requirement offers banks the flexibility to manage their finances better when the credit demand will go up.RBI would investigate the conditions in the credit market as well as the bond market and make appropriate decisions at that point, Rajan said, asserting that banks will continue to be present in the government securities market. He further said that there is no predetermined path with which the central bank is working. On the liquidity management front, he acknowledged that there has been some volatility in the recent past, saying that RBI will soon come up with some measures to reduce it.RBI Deputy Governor H R Khan said, the government has some reservations about disclosing its balances with the central bank to the public. The Reserve Bank, he added, is in discussions with the government to get to know the balances in real time.