Similarly, the domestic postal systems can be connected to the global postal network and the Giro payment mechanism used for cross-border remittance transfers. 4. Framework for retail payment development  4.1 How do we seize the existing or emerging opportunities or create new ones? I hope many suggestions and initiatives may come up during the rest of the day. Let me mention a few of the major steps. The framework suggested here is by no means a well-designed blueprint for retail payment development in the region. It is only an effort made to put together a few thoughts. The key elements are not in any particular order either, but for convenience, I have categorised the key elements into policy and operational aspects. 4.2 In order to enable retail payments to play a critical role in financial inclusion, it is necessary to develop a comprehensive, medium-term framework that facilitates the reform process. Once a framework is prepared, all stakeholders need to operate within the framework designed to achieve common goals. Although the culture and patterns vary from country to country, it is clear that retail payment system reforms require the involvement of both the public and the private sector. In the public sector, the central bank’s or monetary authority’s involvement is essential, because they are responsible for monetary policy and for the preservation of public confidence in money. The private sector is equally important, as it has the most relevant information on the payment preferences of the people and is directly involved in providing payments services.

We need to avoid this lacuna by getting the policy authorities to announce the public policy objectives, such as providing safe and efficient retail payment services, enhancing access to finance and financial inclusion, offering payment services at affordable prices, preserving customer and user rights, providing a legal and regulatory framework and supporting the development of effective standards and infrastructure arrangements. BIS Review 61/2008  5  4.3.4 Customer-centric strategy and fair treatment to customers: Retail payment reforms should go beyond the current requirements and be able to cater to future requirements, given the rapidly expanding trade and financial transactions in the region – primarily in India and some other countries. The strategy should include guidelines to move towards open and standardized customer-centric systems. The retail payment system operators and service providers should attempt to achieve the following outcomes to ensure that the customer is treated fairly: i. To begin with, relevant initiatives should be embedded in the corporate culture of the organization. This requires leadership at senior management level;  ii. Products and services marketed and sold in the retail payments market should be designed to meet the needs of identified customer groups and targeted accordingly. Customers in different groups should be advised appropriately. This would help to reduce misleading advertisements, which often use various gimmicks to attract customers;  iii. Customers should be provided with clear information and kept appropriately informed before, during and after the point of sale. Products should maintain acceptable standards and meet customer expectations.