revised liquidity management framework was thus instituted by the rbi in february 2020. in april 2022, significant changes were instituted in the operating procedure of monetary policy through the introduction of the standing deposit facility ( sdf ) as the floor of the laf corridor. the sdf rate is applicable on uncollateralised overnight deposits and would act as a financial stability tool1. 8. projections of currency in circulation ( cic ) also constitutes a key element of our liquidity management operations. since currency in circulation drains out liquidity from the banking system, projections of its future levels are typically used as an input to finetune the volume of central banks'market operations. 9. a significant technological innovation in the rbi's liquidity management operations has been the introduction of the automated sweep - in and sweep - out ( asiso ) facility. the asiso facility was introduced by the reserve bank in its e - kuber system in august 2020. consequently, the banks are now able to set the amount that they wish to keep as balances in their current accounts with the reserve bank at the end of the day. depending upon this pre - set amount, marginal standing facility ( msf ) and standing deposit facility ( sdf ) bids, as warranted, are auto generated at the end of the day. 10. further, as you are aware, the rbi is currently working towards a phased implementation of the digital rupee ( e ). yesterday ( 1st november, 2022 ), we have started our pilot project on wholesale cbdc. we propose to commence the pilot project for retail cbdcs shortly. 2 / 7 bis - central bankers'speeches ii. strengthening the regulatory framework of banks, nbfcs, ucbs, payment systems and arcs 11. the global shocks and turmoil over the last three years did not distract us from our overarching goal of strengthening the resilience of the financial system and reinforcing financial stability. throughout this entire period, we worked tirelessly and have introduced fresh guidelines in several areas. these include issuance of guidelines on governance in commercial banks in april 2021 ; a steady - state prudential framework for resolution of stressed assets in june 2019 ; securitisation of standard assets in july 2021 ; scale based regulatory ( sbr ) framework for nbfcs in oct 2021 ; revised regulatory framework for urban cooperative banks in july 2022 ; guidelines on digital lending in september 2022 ; revised guidelines for arcs in october 2022

testing phases and are finding it more expensive and time consuming to fix and test their systems than they previously estimated. consequently, many have had to revise their budgets upward and delay the development of new services that would divert limited programming and systems development resources. some banks have started the validation phase and have confirmed that testing is a costly, cumbersome and time consuming process. as for the final phase of implementation, few banks have advanced this far with any more than a handful of their mission critical systems. most have a significant amount of testing ahead of them before final implementation can be accomplished. let ’ s focus for a moment on the testing phase as an excellent example of the magnitude of this process. testing testing is one of the more crucial issues being addressed, given that it will consume more than a year and absorb as much as 70 percent of year 2000 resources. one must focus first on internal testing and the isolation of a test environment to avoid contamination with the current production environment. then a building block approach starts with one - by - one unit testing of a single application such as demand deposit accounting, then progresses to integration testing, which would apply to a group of applications such as those for all deposit systems for demand, time and savings deposits. then system testing combines entire systems, which might, for example, cover all automated applications that permit the preparation of the liabilities side of the general ledger. this is often followed by regression testing which checks each variable and all combinations of variables relied on by the various systems to see if any cause a problem. each application is also subject to external testing that is conducted with a single counter party to confirm compliance with agreed upon protocols and compatibility of different year 2000 solution techniques that may have been used. in a trading operation, this might mean testing trades with a single counterparty. then organizations have to test with multiple counterparties and if problems are discovered, it may require further renovation and retesting. each step is very time consuming and absolutely essential, and it is anticipated that costs associated with getting it done will rise appreciably as strains on labor markets to support such testing grow. the banking agencies are working with the industry to develop guidance on best practices pertaining to testing. in addition, the federal reserve will soon be publishing a detailed schedule of testing opportunities for fedwire, automated clearing house transactions and other services provided by the federal reserve. actual testing will commence at mid - year 1998 and continue throughout 1999. it promises to be a very busy period. con