, the transition risks refer to the risks arising from the process of adjustment towards reducing the emission intensity of the economy. for example, extreme weather events such as storms or floods can disrupt production and supply chains and create shortages of essential goods and services. this could lead to a sudden increase in prices leading to inflationary pressures. again, in india, rising temperatures, heat waves and changing rainfall patterns can also affect crop yields resulting in higher or, at times lower prices of some of the agriculture produce. this may lead to uncertainty in their 1 / 4 bis - central bankers'speeches prices for both - producers and consumers. such uncertainties can make measurement and management of inflation and anchoring of inflation expectations difficult. another challenge that may arise on account of physical risk dimension of climate change is increased probability of loss to banks and financial institutions. first, the operations of these financial institutions, if concentrated in a vulnerable geographical location, may be vulnerable to losses on account of climate events. second, the assets which they have financed or taken as collateral may become unavailable or lose value due to adverse climate events. such loans may turn non - performing, impacting bank's capacity to lend further. the transition risks, if not managed properly, could also lead to sudden fall in asset prices of the carbon - intensive assets or increase in the risk premia, or both, making them unattractive to hold and perhaps creating larger ripples across the financial markets. on the other side, the prices of green assets may rise disproportionately creating a bubble - like situation. further, increased demand of such assets may give rise to greenwashing concerns. disorderly transition could create piquant situations where a sector or industry may witness credit withdrawal or restrictive cost without buildup of sufficient and viable alternatives. such situations may become a limiting factor for production of essential commodities or increase the cost of production. central banks are, therefore, beginning to recognise and evaluate risks which climate change may pose to monetary policy, financial stability and regulated entities. more importantly, the risks arising from climate change transverse geographical boundaries and sectoral segmentations. therefore, tackling climate change requires global coordination and co - operation. being mindful of these challenges, international organisations such as the imf and standard - setting bodies such as the bcbs and fsb are stepping up their work on issues relating to climate change. at the global level, several initiatives are already underway under the aegis of the g - 20. different standard setting

duvvuri subbarao : improving financial literacy amongst school children and college students address by dr duvvuri subbarao, governor of the reserve bank of india, at the joint function of the reserve bank of india ( rbi ) and government of karnataka on the financial literacy project in karnataka, bangalore, 22 march 2010. english translation of the governor ’ s address, which was delivered in kannada. * * * respected chief secretary, government of karnataka shri s. v. ranganath and friends, 1. i am delighted to be present here at this function organized jointly by the government of karnataka and the reserve bank of india. over the last one year we have done a number of functions across the country as part of rbis platinum jubilee celebrations. this function this afternoon here in bangalore is easily one of the most exhilarating functions. it was particularly heart warming to listen to children speaking on financial issues. for the first time, i get a feeling we are making a solid start on financial literacy. our hon ’ ble finance minister shri pranab mukherjee and the chief minister of karnataka shri b. yeddyurappa had shown lot of interest to take part in this program. due to some unforeseen urgent works, they were unable to attend this function. however, they have sent their good wishes for the program. 2. when i came here for the reserve bank ’ s central board meeting in may last year, i had an occasion to call on the chief minister, shri yeddyurappa and explained to him the role of responsibilities of the reserve bank. i also told him about the reserve bank ’ s efforts to further financial literacy and financial inclusion. the chief minister showed great interest and requested that we take karnataka as a pilot state for launching our initiatives and offered the full cooperation of the government of karnataka for this purpose. over the last eight months, the reserve bank worked closely with the government of karnataka on several initiatives. today ’ s function is a culmination of these efforts. 3. there are three distinct events we are marking today. ( i ) the first is the release of text books for classes v, vii and ix containing lessons on finance. ( ii ) the second is the launch of the electronic benefit and income transfer ( ebit ) scheme. ( iii ) the third is distribution of prizes to state - wide winners of the rbi quiz competition conducted across schools and colleges of the state of karnataka. 4. let me now say a few words