economic crisis. central banks have been blamed for getting the world into the crisis. they are also being praised for getting the world out of the crisis. this is not the occasion to debate the faults or celebrate the heroics of central banks. 5. all i want to do on this occasion is to acknowledge that as a result of the impact of the global financial crisis and the follow on euro zone crisis, central banking around the world is changing in dramatic ways. • vigorous debates – about autonomy and accountability of central banks – the mandate they must pursue with regard to monetary policy – their mandate beyond monetary policy • debate playing out in different ways in different countries. • debate playing out here in india too. • we know for sure that there will be changes in central banking everywhere ; there will be changes here in india too. • what those changes will be is not clear. rbi – knowledge institution 6. how should the reserve bank manage that change? • in one sentence – “ by becoming a knowledge institution ”. 7. if someone challenged me : what is a knowledge institution? 8. cannot define. but i can explain it. 9. 10. • hierarchy of learning : • data → information → knowledge → wisdom so, how do we become a knowledge institution? • by becoming a storehouse of knowledge. accumulate knowledge • necessary but not sufficient knowledge institution – sufficient condition ( i ) use that knowledge to achieve your goals. knowledge → wisdom ( ii ) in doing so, your conduct and action must be based on values and ethics. focus of my comments 11. characteristics or attributes that the reserve bank must acquire to progress on the path to being a knowledge institution. bis central bankers ’ speeches 12. 1st attribute : managing monetary and regulatory policies in a globalizing world • gfc and the eurozone crisis have demonstrated the uncertainties and dilemmas of macroeconomic management in a globalizing world. • before the crisis – we thought we were decoupled. crisis proved that to be wrong. • virtually every country affected by the crisis. if there is one country that should not have been affected, it is india. among large emes, india least integrated into the world. shows the power of globalization. • does it mean we are paying too high a price for globalization? does it mean we opt out of globalization? • no. perish the thought. • globalization is a double edged sword. immense opportunities. ruthless challenges. • india benefitted from globalization. great moderation – benign global

swaminathan j : safe banking practices – protecting the young speech by mr swaminathan j, deputy governor of the reserve bank of india, at the global money week 2024, paris, 18 march 2024. * * * mr. yoshiki takeuchi, deputy secretary general, oecd, ms. mairead mcguiness, european commissioner for financial services, ms. magda bianco, chair of oecd infe and g20 gpfi, mr. connor graham, youth representative from enactus, assembled regulators from across the world, ladies and gentlemen. a very warm good morning to all of you. it gives me immense pleasure to speak to you today on a highly relevant topic - safe banking practices and protecting the young. as we are all aware, the covid - 19 pandemic accelerated digitalisation in financial services, prompting a swift transition to online mode by service providers and customers. accompanying this surge in digitalisation was also the proliferation of fintech platforms. often operating outside the regulatory envelope and unconstrained by legacy systems that typically encumber traditional banks, fintech companies exhibit remarkable agility and adaptability in offering customised financial products. these developments are indeed welcome. however, while they offer immense benefits such as accessibility and hyper - personalization, they also heighten the risk of misuse and fraud. they can expose consumers to risk of cyberattacks, data breaches, and often times, some financial harm. consumers may struggle to resolve disputes or obtain compensation due to lack of transparency on the part of such players. these new risks must be addressed through robust regulatory frameworks, enhanced cybersecurity measures, and increased consumer awareness initiatives. in this context, i would like to share some of the approaches adopted in india through regulation, supervision and most importantly, enhanced consumer awareness. regulation and supervision in india, regulated entities are required1 to implement multi - factor authentication for all payments through electronic modes and fund transfers, except for some explicitly exempted small value transactions. at least one of the authentication methodologies should be generally dynamic or non - replicable such as one - time password, mobile device binding, biometric, etc. regulated entities are required to put in place security controls for internet banking, mobile payments application and card payments security. regulated entities are also required to conduct risk assessment of the safety of digital payment products as well as suitability and appropriateness of the same vis - a - vis