the objectives of the financial inclusion / literacy agenda is to ensure that the sections of the society that are hitherto undeserving of credit facilities are made credit worthy. initiatives such as setting up rural development and self - employment training institutes ( rudsetis ) and financial literacy and credit counselling centres ( flccs ) by different banks are aimed at ensuring this. some of the other steps taken by rbi to promote financial literacy are as under : outreach visits by top executives of reserve bank of india to remote villages on a continuous basis – to spread the message of financial awareness and literacy. rbi website – a link on financial education in the rbi website for the common man, containing material in 13 indian languages which includes comic books on money and banking for children, essay competition etc. awareness – by distributing pamphlets, comic books, enacting plays and skits, arranging stalls in local fairs, exhibitions, participation in information / literacy programmes organized by press inclusion of financial education material in school curriculum by various state governments use of mobile financial literacy vans by banks in the north eastern states weekly radio programmes on fl in some states by banks & similar programmes in tribal districts by nabard awareness programmes on various government sponsored self employment schemes involving bank loans & subsidy by government agencies like kvic, dics, sc / st corporations mass media campaigns tie ups with educational institutes, financial awareness workshops / help lines, books, pamphlets and publications on fl by ngos, financial market players etc. national & state level rural livelihood missions have large number of field functionaries for proper handholding support to large number of self help groups large number of other websites / portals of banks / / state level bankers committees disseminating information on banking services conduct of training programmes for farmers club, ngos & shg members by nabard banking ombudsman – quick and cheap forum of grievance redressal in india, we do have a law for consumer protection though not specifically for the financial sector consumers. in regard to bank customers, we have the banking codes & standards board of india ( bcsbi ) which is the standards setting body for banking services. the self - regulatory organization of the banking industry viz., indian banks association has evolved a fair practices code to be adopted by its members. bis central bankers ’ speeches to ensure that consumers are protected even in case of plain vanilla products, the reserve bank of india has instituted the banking ombudsman, an alternate dispute resolution mechanism. we are examining the possibility of

banks and the central bank ’ s fx liquidity at the time. figure 2 bis central bankers ’ speeches based on published financial accounts and the analysis of the supervisor, the icelandic authorities assumed that the banks were solvent. on that premise, the authorities tried to build defences against potential foreign currency liquidity problems at the banks by negotiating swap lines and tapping foreign capital markets, in both cases with limited success. now, however, we know that there were hidden vulnerabilities in the banks ’ capital positions. however, given the lack of international cooperation, the icelandic authorities were forced to consider radical solutions. although they were not necessarily articulated fully at the time, these solutions entailed several goals : preserving a functioning domestic payment system, ring - fencing the sovereign in the case of bank failures, limiting the socialisation of private sector losses, and creating the conditions for rebuilding a domestic banking system. in essence, the adopted solution saved the domestic operations of the banking system and let the international part to go into a resolution process. the new banks were created by carving the domestic assets and liabilities out of the old failing banks. the idea was then that the government would recapitalise the banks and place compensation bonds in the estates of the failed banks. however, valuing the assets and liabilities proved a complicated process in the middle of an economic and financial crisis, and a solution emerged where the estates of the failed banks became majority owners of two of the banks and kept a small equity stake in the third, which was otherwise recapitalised by the government. the new banking system amounted to 1. 7 times gdp. in order to stop an incipient run on domestic deposits, all deposits in iceland were declared safe and all deposits in icelandic - headquartered banks were given priority over other unsecured claims, including the deposits of the icelandic banks in branches abroad. as a result of these measures, the domestic payment system functioned more or less seamlessly throughout, and there was uninterrupted access to deposits in iceland. the run on the domestic banks stopped, but at its peak, demand for cash tripled and the central bank almost ran out of banknotes. international payment flows were seriously affected, however, not least because of the freezing order imposed by the british authorities on icelandic banks, but also because of a general distrust among foreign counterparties. why did the government give a verbal blanket guarantee for domestic deposits only and not for deposits in the banks ’ foreign branches? after all,