high cost poses a barrier to inclusion. greater access to payment or transactional accounts can be an effective on - ramp to a broader range of financial services and boost our efforts toward financial inclusion. in addition, a shift to electronic payments will facilitate efficiency, which is convenience at the right cost. this will lead to lower business costs and higher consumer expenditure, a driver of economic growth in many economies. in fact, a cross country study found that a 10 % increase in the share of electronic payments was correlated with a. 5 % increase in consumer spending. 1 this efficiency will also drive business innovation and promote greater transparency in transactions. all these are also crucial in preparing for a more integrated asean economic community. le sar, porteous, introduction to national payments system, national payments system institute, 2013. bis central bankers ’ speeches nevertheless, while we celebrate this milestone today, we realize that this is just the beginning. there are still things to do and bear in mind as we take this journey forward. let me focus on three : first, it is important to establish well - defined rules, policies and processes to set the stage for areas of cooperation and areas of competition. this will facilitate the entry of new players, create a level playing field and provide the framework for inter - operability. second, there is a need to upgrade current arrangements to enable the participation of payment service providers, including non - banks. this will support the environment for innovation and efficiency in payment channels and the development new and inclusive business models. third and last is to always have the customer in mind. the retail payment system should provide each of its users with transparency, certainty and reliability. these are the critical steps in this journey ; which will surely lead us to a destination that will benefit all – a truly inclusive and efficient national retail payment system that promotes electronic payments in the country. these benefits reveal the very purpose of this journey. i have no doubt that the members of our banking community will all continue to work together toward this end of providing better payment services to our people. our next step is to collaborate on how to best implement not only the merger of atm and pos or point of sales operations, but the overall integration of our payments system. finally, i thank and congratulate everyone responsible for this milestone event. mabuhay ang banking system! mabuhay po tayong lahat. maraming, maraming salamat! bis central bankers ’ speeches

raghuram rajan : financial sector legislative reforms committee report ( fslrc ) – what to do and when? talk by dr raghuram rajan, governor of the reserve bank of india, at the first state bank “ banking and economic conclave ”, mumbai, 17 june 2014. * * * the financial sector legislative reforms committee ( fslrc ) report is one of the most important, well researched, as well as well - publicized reports in indian financial history. it not only lays out the functions of the financial sector and how it should be structured, but also how legislation and regulation governing it ought to look like. the authors of this report truly have to be commended for their national service. the report ’ s influence will be felt for many years to come. there is much to like and agree with in the report. in laying out the need for consumer protection, raising the issue of whether products sold are suitable for the target customer, and putting the onus on the financial institution to determine suitability, the report has forced regulators to review their consumer protection frameworks. we at the rbi are indeed engaged in such an exercise, informed by the valuable guidelines in the fslrc report. there is more of great value. the fslrc ’ s emphasis on the need for a clear monetary framework culminated in the dr. urjit patel committee report, which will guide our thinking in the years to come. similarly, its focus on creating new institutions like the financial resolution authority, which will help us resolve distressed financial institutions at minimum cost to the economy, is much needed. i could go on. but i come here not to praise the fslrc report, but to debate some of it. i will argue that there are two fundamental areas of tension. one is the oversight of regulators. the fslrc suggests laws that do not micromanage, giving regulators the freedom to fill in the details in consonance with the changing needs of the economy. at the same time, the fslrc wants to check and balance the activities of regulators through judicial oversight. too much of checks and balances could completely vitiate the flexibility afforded by rewriting laws. we need to find a proper balance, and the balance may vary with our level of development. i worry we have not thought through this fully. the second area of tension is the appropriate size and scope of regulators. the fslrc ’ s recommendations seem somewhat schizophrenic here.