, educational institutions, ngos, financial sector entities, multilateral international players and the government at both centre and state. 14. banks and financial literacy • we have advised banks that there should be at least one financial literacy centres ( flc ) in all the districts ( 640 + ) throughout the country. these flcs are required to conduct outdoor financial literacy camps at least once in a month. banks have already set up about 650 flcs till date. • further, every rural branch ( 35000 + ) is required to conduct a financial literacy camp at least once in a month. through these camps, we envisage imparting of financial literacy in the form of simple messages like why save with banks, why borrow from banks, why borrow as far as possible for income generating activities, why repay in time, why insure yourself, why save for your retirement etc. • starting from april 2012, we have been able to educate about 1 million plus people through these literacy programs. 15. our strategy on financial inclusion and financial literacy • bank led model • more by moral suasion by asking banks to see their enlightened self - interest, than by regulation • let a thousand flowers bloom! 16. fips prepared and implemented by banks. why not a more prescriptive model? ( i ) innovative ideas ( ii ) tailored to their business model ( iii ) ownership of the plan ( iv ) india a diverse country. let a thousand experiments take place. 17. many accomplishments • some of it in numbers • some of it in heart - warming stories that we have heard from across the length and breadth of the country • villages now having access to banking – 200, 000 / 600, 000 through branches + bcs bis central bankers ’ speeches • hundreds of millions of people, often illiterate, use smart cards with biometric identification, for bank transactions ( secretary geithner ) • tens of millions of people use mobile handheld electronic devices for banking • 10 million shgs across the country are credit linked to banks for income enhancing activities • villages ask for bank branches as they ask for schools and health centres [ neighbouring villages of jalanga ] • women voluntarily forming shgs • outreach programmes – more than 50 % of participant attendees are women • ebt – in several states • direct cash transfer in 50 districts 18. challenge for rbi • banks see this as an obligation and not an opportunity • kyc ( migrant labour ) and uid – simplifying without compromising security •

17. derivative markets play an important role in allowing entities to hedge their risks and improving liquidity for the underlying product. several measures have been taken to rationalise the regulatory framework for forex, credit and interest rate derivative markets. principle - based regimes have been implemented in place of prescriptive regulations in a bid to provide greater flexibility and operational freedom to market participants. access of non - residents to these markets has been eased. the access of institutional users to the markets has been facilitated both for hedging and for expressing their views on market movements. 18. with these reform measures, product due diligence assumes greater importance. it would ensure that market - makers offer products that match the requirement of the users and avoid exposing their clients to excessive risk. considering the recent changes in the regulations relating to otc derivatives and in line with international standards, a regulatory framework for market - makers in otc derivatives 3 has been put in place to ensure high standards of governance, risk management and conduct by market makers. 19. we have also continued our efforts towards integrating domestic and offshore inr markets. banks in india with operative ifsc banking units were permitted to access the offshore non - deliverable rupee derivative market in 2020. to facilitate integration of offshore and master direction – reserve bank of india ( market maker in otc derivatives ) directions, 2021 dated september 16, 2021 ( https : / / www. rbi. org. in / scripts / fs _ notification. aspx? id = 12163 & fn = 6 & mode = 0 ) onshore markets for overnight indexed swaps ( ois ) – the most active rupee interest rate derivative in the domestic market – banks in india and standalone primary dealers ( spds ) have been permitted to undertake settlement of ois transactions with non - residents in foreign currency. 20. broadly, the recent regulatory and institutional reforms have been aimed at enabling the domestic financial markets to face the challenges of the next decade. cutting across market segments, these reforms seek to usher in a simplified, principle - based regulatory framework that seeks to broadbase markets by easing access, enhancing participation, facilitating innovation, protecting users and promoting fair conduct. market participants and market bodies as reform partners 21. it is important to note that achievement of the desired outcomes from the significant changes in the regulatory framework for financial market and its infrastructure is contingent upon market participants taking forward the reform agenda. it is heartening to see the market participants rising to the occasion and partnering