fund flows to the sector are uninterrupted ; however, it needs to be achieved under viable modes of financing and appropriate structures with proper sharing of risks. with the experience of higher level of stress in psbs, it is important that lending institutions using public deposits are not exposed to undue and unmanageable levels of risk from external factors and in the process jeopardizing financial stability. ( v ) rbi has been engaging with all the stakeholders for creating a suitable environment to resolve the problem of npas in infrastructure sector. some of the important measures taken are as under : • banks have been advised to carry out sensitivity tests / scenario analysis, for infrastructure projects, which should inter alia include project delays and cost overruns. • the reserve bank has introduced a comprehensive framework for revitalising distressed assets in the economy in january 2014 for early detection of sickness and remedial measures • the bank has set up the central repository of information on large credits ( crilc ) in april 2014 to collect, store and disseminate credit data to lenders to enable banks to take informed credit decisions. • disincentives have been proposed for : ( i ) wilful defaulters and non - cooperative borrowers, making their future borrowings more expensive, and ( ii ) for auditors, advocates and valuers who provide incorrect opinions about borrowers and their assets leading to deterioration in the asset quality of banks. • disincentives in the form of accelerated provisioning norms have also been proposed for the lenders for their failure to report the status of distress account to crilc, for attempts to conceal the actual status of the accounts or upon failure to convene the jlf within the stipulated timeframe etc. bis central bankers ’ speeches • rbi has issued guidelines to encourage sale of assets to securitisation companies ( scs ) / reconstruction companies ( rcs ) at a stage when the assets have good chance of revival and fair amount of realizable value making it a supportive system for stressed asset management with greater emphasis on asset reconstruction rather than asset stripping. ( d ) rbi initiatives to support infrastructure financing 21. let me now briefly highlight some of the recent regulatory initiatives taken by rbi to facilitate flow of funds to the sector. in order to ensure adequate credit flow to infrastructure sector and to the affordable housing needs of the country, rbi ’ s extant prudential guidelines were reviewed with a view to minimizing certain regulatory pre - emption

these objectives in the absence of poverty alleviation. extreme poverty and deprivation often discourage the urge of the poor to participate in programs that do not provide immediate support to their livelihood. to encourage the poor to participate in these initiatives, therefore, requires that developmental programs, at the starting point, should focus on providing opportunities for people to earn a living and increase their incomes over time. the program can be followed up by providing people the means for enhancement of their capabilities to exploit available opportunities. finally, effective mechanisms for protection against a temporary or permanent loss of livelihood should supplement the overall program to achieve the goal of inclusive growth. presently, a number of intervention programs are conducted by the government that focus on employment creation and the flagship nrega is one such significant initiative. one could not, of course, belittle the excellent work being done by non - government organizations engaged in supporting livelihoods in several poor underdeveloped hinterlands. in the financial sector, the reserve bank has crafted well known programs to achieve planned, structured and sustained financial inclusion such as adoption of business correspondent and business facilitator model, preparation of board approved financial inclusion plans, requiring banks to providing a minimum of four banking products and services including nofrills accounts with overdrafts, and is committed to furthering the scope of these initiatives. collective and multipronged efforts to promote inclusive growth supplemented by some earnest investment in human capital are the only ways by which we can move towards becoming a knowledge economy. the second stage assimilation of knowledge, skills and technology can be obtained from education by means of brain - gain. the virtual modes of education through ict and linkages to national and international information hubs can provide the benefits of information availability without the need to be present at in certain space or time. the benefits of brain – gain are realized from the wide - spread availability of domain knowledge from remote locations which can transform business productivity at minimal cost. the e - choupal experiment of itc, for example, showcases the possibility of bis central bankers ’ speeches improvement in quality of produce and improved realization of returns from farming due to availability of better information on market prices. the helpline of the ministry of agriculture with experts on board has been similarly instrumental in solving day to day problems of farmers. further, internet based e - education portals for students offer boundary - free learning experience. these portals provide virtual classrooms and guidance from professional instructors on different subject areas and can have widest possible reach regardless of brick