In a veiled attack at policies being adopted by countries like the US, she said, "There is a new approach in the world that says shouldn't we look after our own, and ensure that our own are looked after."
"If old ways continue, not only will investment rates continue to fall and debt continue to rise, but financial risks will also increase," Wang Yiming, deputy director of the Development Research Centre of the State Council wrote in the ruling Communist Party's official newspaper, People's Daily.
Padmanabhan, who is set to retire from the central bank this month, added India could not afford to remain isolated from global financial systems with existing caps on capital account transactions.
In the second part of the special series Sebi@ 25, CNBC-TV18‘s Ashmit Kumar reveals details how the market regulator learnt from these lapses and emerged keener and stronger