to normal functioning without relying on the regulatory relaxations and other measures as the new norm. 5. in my address today, i would like to dwell upon the following theme : it is time for banks to look deeply within : reorienting banking post - covid. just like boosting immunity of the population is the key to tackle pandemics, the key to long term financial stability would be to foster tangible improvement in the inherent ability of the banks to withstand the exogenous shocks like the current pandemic. as i have stated elsewhere, the causes of weak banks can usually be traced to one or more of the following conditions : an inappropriate business model given the business environment ; quality or the lack of governance and decision making ; misalignment of internal incentive structures with external shareholder / stakeholder interests1 and other factors. accordingly, the core of resilient banks is made up of good governance, effective risk management and robust internal controls. this is not to say that indian banks do not have sound governance and risk management systems in place. there is always scope for improvement and these are the areas which need greater attention going forward. 6. in recent years, the business landscape of banks has undergone significant change. today the banks need to look out for ‘ sunrise ’ sectors while supporting those which have the potential to bounce back. for instance, banks need to look at prospective business opportunities in the rural sector which remain unexplored despite efforts to support it. they need to look at start1 / 3 bis central bankers'speeches ups, renewables, logistics, value chains and other such potential areas. the banking sector has a responsible role to play not only as a facilitator of growth of the economy but also to earn its own bread. thus, a complete relook at the business strategy and orientation is the immediate need of the hour. 7. scale ignites the volume effect in business turnover ; but that presupposes bigger size of the banks. despite several reforms in the banking sector since its nationalisation, lot more needs to be done. with change in time, the nature of reforms needs to be reconfigured. the current steps towards consolidation of public sector banks in line with the narasimham committee recommendation is a step in the right direction. indian banks this way can reap the benefits of scale, and become partners in the newer business opportunities across the globe. larger and more efficient banks, both in public and private sector

made significant contributions to the formulation and implementation of the country ’ s first and second five year plans. he was instrumental in the enactment of new companies act and nationalisation of the imperial bank of india and life insurance companies. after resignation from union cabinet he worked as chairman of ugc during 1956 to 1961 and vice - chancellor of university of delhi from 1962 to 1967. in 1975, he was bestowed with the padma vibhushan award. he was also a co - recipient of the prestigious ramon magsaysay award in 1959 for distinguished government service. 5. for this year ’ s memorial lecture in honour of shri c. d. deshmukh, it is our pleasure to have mr. agustin carstens with us. he was the governor of the central bank of mexico from 2010 to 2017 and a member of the bis board from 2011 to 2017. as a bis board member, he chaired the global economy meetings and the meetings of economic consultative council. he also headed the international monetary and financial committee, the imf ’ s policy advisory committee for two years. 6. mr. carstens began his career at the bank of mexico in 1980, where he has worked in various capacities. he later served as mexico ’ s deputy finance minister and as deputy managing director at the imf. he was mexico ’ s finance minister from 2006 to 2009. he has also been a member of the financial stability board since 2010 and is a member of the group of thirty. 7. mr. carstens holds a doctoral degree in economics from university of chicago and has extensive research experience in the field of macroeconomic issues and finance. his work on ‘ latin american central bank reform : progress and challenges ’, which takes stock of the 1 / 2 bis central bankers'speeches institutional reforms of monetary policy in latin america since the early 1990s, was widely acknowledged. 8. today, mr. carstens will speak on “ central banking and innovation : partners in the quest for financial inclusion ”, – a topic which could easily be the most relevant at the current juncture. the recent emergence of fintech or digital innovations in finance is potentially a strong transformative force to shape the financial sector globally. a great benefit of these technological developments is the scope to expand financial outreach in a cost effective manner. at the same time, however, there are regulatory and supervisory challenges which the central banks across the globe need to address. 9. the reserve bank is committed to promote and deepen the cause of financial inclusion in india