, the weight on the former will be increased while the weight on the latter will be reduced. these are interesting ideas, and we will explore them in greater detail. finally, let me turn to consumer literacy and protection. as we reach more and more of the population, we have to be sure that they understand the products they are being sold and have the information to make sensible decisions. caveat emptor or let the buyer beware is typically the standard used in financial markets – that is, so long as the buyer is not actively misled, she is responsible for researching her product choices and making purchase decisions. while this puts a lot of burden on the buyer to do due diligence, it also gives her a lot of freedom to make choices, including of course the freedom to make bad choices. but with poorly informed and unsophisticated investors, we should consider the dr. nachiket mor committee ’ s recommendation of setting some guidelines on what products are suitable for different categories of investors. broadly speaking, the more complicated the product the more sophisticated should be the target customer. should we move to a norm where a suite of simple products is pre - approved for dissemination to all, but as products get more complicated, financial sector providers bear more and more responsibility to show that the buyer was sophisticated and / or appropriately counseled before she purchased the product? of course, the longer run answer is for customers to become more savvy. can the technology sector help educate people in financial matters? after all, finance is not something most people learn in schools, but it is something they encounter every day in the world. low cost but high quality distance finance education is something the country very much needs and we look to entrepreneurs here to think of innovative ways to provide it. before i conclude, one caveat. technology can magnify the reach of finance for bad purposes as well as good. many of you must receive frequent emails, purportedly from me, informing you of a large sum of money that awaits you at the rbi, and urging you to send me bis central bankers ’ speeches your account details so that i can transfer the money to you. let me assure you that the rbi does not give out money, i do not send these emails, and if you do fall for such emails, you will lose a lot of money to crooks and be reminded of the adage – if anything looks too good to be true, it probably is not true.

exhortations, few banks have reduced their demand for documentation – they fear that they will be held responsible if something goes wrong, no matter what the regulatory norms. the acceptance of third party kyc certification is particularly difficult. today, stringent kyc norms keep too many out of the banking system, and lead to unnecessary harassment for others. banks may adopt these norms more because of regulatory or legal liability than to safeguard against true criminal or terrorist activity. can ’ t we do better? some bankers suggest that by monitoring activity patterns in accounts carefully, even while putting some limits on basic accounts ( such as holding a large value cheque for a few days before it is cashed ), much of the suspicious activity can be detected and stopped. could we allow a commercial bank some regulatory dispensation in case there is minor bis central bankers ’ speeches mischief in some low value accounts, provided the bank has a reliable system in place to detect greater mischief? could the gains in easing widespread access to safe accounts outweigh the costs of minor fraud? how can we get entities within the system to rely on each other ’ s kyc, without the process having to be continuously repeated? how can technology assist in effectively addressing the above issues? these are questions we have to examine and address. the broader issue is whether through sophisticated state - of - the - art technology, we can offer customers products that are simple, low - cost, and easy to use. we have done this with mobile phones, can we do it with banking? payments may be another obvious product. i should note that our payments infrastructure in india is very advanced. we have three large rbi technology centers devoted to supporting payments and robust payment and settlement networks for both large value and small transactions. we have introduced an additional factor of authentication for all e - commerce transactions – which makes these transactions more secure – and are swiftly moving to chip and pin technology for credit card transactions. sms alerts for bank and credit card transactions are an important advance relative to even the united states, where thieves find it easy to bill thousands of dollars to your credit card even before you know it is stolen. all this means that we have the infrastructure to provide cheap and safe payments and remittances. what we need are nongovernmental players to utilize this infrastructure to provide the products and access that people want. with over 900 million mobile phones, the potential for mobile banking as a delivery channel for financial services is a big opportunity in india.