australia ). this bi - lateral focus can be quite troubling, and not only because it risks over - simplifying problems and therefore lessening the likelihood of solutions. it can be troubling for a host of small countries, which worry about the potential for more widespread effects of solutions that may be attempted. this is why it is so important that the problems be considered, and resolved, in a multi - lateral setting. hence the importance of the international financial institutions, and of fora like the g - 20, in providing the table around which these discussions should take place. that of course means that the legitimacy of those institutions, in the eyes of all their stakeholders, is key. good progress has been made in improving the governance of bodies such as the imf and no doubt more will be done in this area over the years ahead. the g - 20, a body with a broader constituency than the g7, has taken a more prominent role. this is all good, but will need to be accompanied by ongoing efforts to reach a shared vision of the role of the institutions and the system they are supposed to watch over and protect. if we bis central bankers ’ speeches are all still not talking the same language about the role of the system or the institutions, then we will not collectively get very far. so much work needs to be done yet. america – still the world ’ s dominant single economy and financial power, albeit not as dominant as it was – is critical to reaching the necessary framework. but so too is asia – a fast - growing, high - saving region with increasing financial resources, a much increased part of the global economy and financial system, and with, therefore, commensurately increased responsibilities. australia – a small but outward - looking country with very substantial ties to both the united states and asia – has more than a passing interest in the progress of this very difficult, but very important, discussion. bis central bankers ’ speeches

any other international payments channel. another instance is the proliferation of non - bank payment gateway service providers. these entities based across the globe acquire merchants in any country. domestic transactions are masked as foreign currency transactions and settled through overseas acquiring banks. 26. the card payment network has become a conduit for facilitation of initial funding and customer verification for internet based payment service providers stated earlier. it would be appropriate that card companies and the member banks take note of these developments and initiate appropriate and timely action so as to guard themselves against any reputational risk. we are continuously monitoring the developments and will take strong action against such violations. 27. this does not mean that reserve bank is averse to innovations in payment systems / products. we have an open mind towards all innovations. innovations within the existing legal / regulatory framework are easier to access and authorize ; innovations which bis central bankers ’ speeches require modifications to these would require further debate and above all the enabling legal mandate. however, all payment system providers would have to be approved under the payment system act to operate in the country. in this regard, we need to note that usa, a country which permitted free development of such products, has also started discussions on licensing and regulation of products. conclusion 28. the evolving payment systems scenario offers new challenges and opportunities to all segments of this industry. to leverage on the opportunities provided by new products, the system providers / banks need to ensure that the challenges are adequately addressed. it also has to be ensured that the products cover all segments of the population and provide an incentive to adopt these products. the regulatory process would support all orderly development of new systems and processes, within the legal mandate. i hope this conference will deliberate on all these issues especially how the aam aadmi can be provided cost - effective, safe, speedier and hassle free payment and settlement products and solutions. the challenge before all the stakeholders including banks and non - bank players, it vendors, other service providers, etc. is how to introduce such a next generation payment and settlement system and solutions that is needed to take the country into the 21st century. bis central bankers ’ speeches annex statistics – at glance bis central bankers ’ speeches