cross - thinking spanning regulatory domains and national boundaries. with its own independent board comprising eminent members from industry and academia, i am sure rbih is perfectly positioned to facilitate convergence of ideas among various stakeholders. while fostering innovation, however, the underlying focus of rbih should always be to promote access to financial services and products for the low - income population in the country. it should be our duty to promote such innovation that not only improves process efficiencies but also transforms the society. the overall focus, i feel, should be on innovation with a purpose. 6. i am happy to hear that to begin with, the hub has plans of identifying and mentoring start - ups having maximum potential. i wish and hope that the hub strives to nurture multiple indigenous ideas in the short to medium term, each of which can positively impact one or more segments of our financial ecosystem. the hub is also expected to collaborate with various government ministries / departments / academia to identify problem statements in different domains and explore potential solutions. to become a hub in true sense, rbih should serve as a focal point for interaction among various stakeholders. it should become the epicentre for promotion and exchange of views and knowledge - sharing, while also remaining focused on delivering clear cut 1 / 2 bis central bankers'speeches objectives within reasonable timelines. 7. rbih should aim to establish itself as a respected innovation and incubation centre, and showcase india ’ s commitment to openness of ideas, resolve to innovate, with underlying concern for inclusive growth. i am confident that rbih shall facilitate making our financial sector more agile, participative and robust. 8. with these words, i am delighted to inaugurate the rbih and wish it all success. the expectations are high and the hub will be guided by public interest. it has the potential to touch the lives of every citizen by facilitating innovations with high social impact. the hub, i am sure, will emerge as a significant player in india ’ s journey of inclusive growth. 1 national bank for agriculture and rural development ( nabard ) ; the clearing corporation of india limited ( ccil ) ; national payments corporation of india ( npci ) ; institute for development and research in banking technology ( idrbt ) ; indira gandhi institute of development research ( igidr ) ; reserve bank information technology pvt. ltd ( rebit ) 2 / 2 bis central bankers'speeches

to ensure this. having briefly looked back, let me now look to the future. i would like to stress two points. first, while the banking sector is more resilient than it used to be, i am not fully satisfied with the current situation. and second, i would like us all to keep in mind that, while a resilient banking sector is a necessary condition for financial stability, it is not enough on its own. in other words, increased resilience does not mean we will never see another crisis. supervisors must continue to be tough on banks. and legislators should support them. 1 / 2 bis central bankers'speeches as memories of the crisis fade, i see a high risk of complacency. not only has there been a slowdown in the momentum for reform and further harmonisation of unjustified differences in national supervisory law, in some countries we have even started going backwards. we should all remember that the lesson of the crisis was clear : light - touch regulation and supervision of the banking sector does not work. any short - term gains will be more than offset by the damage to the economy caused by the resulting financial instability. so banks must continue to improve in several areas. and now is a good point to stress that financial stability is also good for the banks themselves. for a start, many banks should take advantage of the good times to continue cleaning up their balance sheets and adapt their business models to face upcoming challenges – the current economic environment is as good as it gets! all banks also need to further strengthen their risk management frameworks, it systems and internal capital and liquidity management. but not only banks still have work to do. in this vein, i would like to mention several points that will be relevant to the discussion later on : 1. there are still approximately 30 microprudential national options and discretions addressed to member states. 2. many important european tools, such as fit and proper assessments and the early intervention measures, are covered by directives which have to be transposed into national law. this adds to the fragmentation and leads to an uneven playing field. 3. we still lack harmonised supervision of third - country branches and investment firms. 4. for some important directives, such as the anti - money laundering one, transposition into national law has been held up or hasn ’ t even started. but as i promised to keep this statement short, i will stop here for now. thank you for your attention,