a bigger problem than if you had precipitated it early on. no credit is given for precipitating a crisis early, but there is plenty of blame for being present at the scene of the crime. so it is not surprising that there was, beforehand, a certain amount of hand - wringing about financial sector weaknesses, but this was muted background noise in the general enthusiasm to embrace the new world. what might be done? the first point that should be made here is that the main burden for getting things sorted out again clearly rests with these countries themselves. the related point here is that, for some, ( to borrow the catch - cry from positive - thinking management texts ) “ this isn ’ t a problem, it ’ s an opportunity ”. for some of these countries, the process of institutional reform may be like punctuated development in evolutionary theory, where progress takes place in jerky stages, with a crisis such as this causing people to focus on the issues and to reform weaknesses. in this view, countries can come out of this trauma stronger than before. it seems quite likely that some countries will be better than others at turning these problems into opportunities. while part of the reaction to these problems must be institutional strengthening of the financial system, there remains a question whether the broad thrust of macro policy - - and, by implication, the spanking rates of growth which these countries have achieved over the past couple of decades - - is sustainable. to put this more specifically, is it possible to achieve the sorts of integration with international markets, the large inflows of capital which went with this and the rapid transformation of economies, without leaving these economies vulnerable to the sorts of changes of sentiment that we have seen in recent months? the constraint on growth is not the conventional one of resources and technology. the constraining factor here is just how resilient can the financial sector be made : the more robust it can be made, the faster these countries will be able to travel. we know the historical experience of singapore, which ran current account deficits averaging 10 per cent of gdp for more than two decades. we know, too, that this was an important element in the extraordinary progress that singapore has made. we know, however, that large current account deficits were one of the elements which made the other asean countries vulnerable in recent years ( and this vulnerability has always been a concern in australia, too, despite the academic case that current account deficits resulting from private sector

nearly 384, 000. out of these, 115, 350 banking outlets were opened during the year – 2013 – 14. ii. nearly 5, 300 rural branches were opened during the last one year. out of these, nearly 4, 600 branches were opened in unbanked rural centres ( tier v and tier vi centres ). iii. nearly 33500 bc outlets were opened in urban locations during the year taking the total number of bc outlets in urban locations to 60730 as at the end of march 2014. iv. more than 60 million basic savings bank deposit accounts ( bsbdas ) were added during the last year taking the total number of bsbdas to 243 million. v. with the addition of 6. 2 million small farm sector credits during the year 2013 – 14, there are 40 million such accounts as on march 31, 2014. vi. with the addition of 3. 8 million small non - farm sector credits during the year 2013 – 14, there are 7. 4 million such accounts as on march 31, 2014. vii. nearly 328 million transactions were carried out in bc - ict accounts during the last year as compared to 250 million transactions during 2012 – 13. though, the number of bc - ict transactions has shown a considerable increase during the last year the average transaction per account still remains low. the focus of monitoring is now more on usage of these accounts through issue of more credit products through the channel. the reserve bank also issued guidelines to strengthen the bc model. implementation and monitoring of financial inclusion targets should focus on usage of bank accounts, and expand beyond transfer payouts. as the recent inter media survey shows, only half the bank accounts have been active over the previous three months. in order to increase transactions, there should be clear communication to customers about the mission and banks should be incentivised to provide appropriate products that increase usage. bis central bankers ’ speeches way forwardstructure with adoption of new branchless delivery channels by banks, there is a need for banks to revamp the structure for carrying out banking operations considering their competitive, comparative advantage and build strategy and a business case. each bank has to, based on its business strategy, develop a structure that can enhance its financial inclusion efforts. innovation • business models should be designed to be at least self - supporting in the initial phase and profit - making in the long run, with an unwavering focus on affordability for the poorer person transacting in the penny economy where there are large volume