##ilience practices ” to allow institutions to compare themselves with their peers. should we not be emulating such tests to make our systems stronger? new rtgs system 41. lastly i want to speak about a system that has made our country stand out in the world. the new real time gross settlement ( rtgs ) system is operational for a few months now. the application is working very well and i must compliment the banks and idrbt on its success. this application uses the iso 20022 messaging standards. it is for the first time in the world that these messaging standards have been used in the wholesale payments. though the plain vanilla version of the application is in operation presently, it has many more features that would be introduced gradually in days to come. in order to introduce these features in the application, the cooperation of all stakeholders is vital. training to banks and spread of awareness among banks as also customers would be vital at the time of introduction of the features. i take this opportunity to request the cooperation of all banks in our endeavour to make this happen. 42. allow me to conclude by saying that in the changing environment, cio must lead innovation by anticipating requirements for new applications and services and by enabling access to internal data with the proper controls in place to manage risk and network security. cios must also spend more time in the c - suite planning the future and less time in the data centres sustaining the past. 43. here ’ s wishing the conference – whatever is left of it – fruitful deliberations. source : http : / / www. bankofengland. co. uk / publications / pages / news / 2013 / 127. aspx. bis central bankers ’ speeches

. to sum up, the surmise from the challenge posed by the growth - inflation dynamics is the following. today ’ s investment is tomorrow ’ s production capacity. india needs to not only reverse the investment downturn but also increase it significantly to raise production to match the growing consumption demand. increase in investment is necessary also to raise production for exports and thereby create jobs at home. making this happen requires a supply response from the government by way of providing public goods and creating a conducive environment for private investment. meanwhile, the reserve bank has to ensure that inflation is brought down to the threshold level and is maintained there. second challenge : mitigating the vulnerability of the external sector 42. over the last two years, india ’ s balance of payments ( bop ) has come under growing pressure as evidenced most clearly by a large and increasing current account deficit ( cad ). the cad last year ( 2011 / 12 ) was 4. 2 per cent of gdp, historically the highest ; the cad during the current year is expected to be even higher. 43. many will recall that india went through a balance of payments crisis in 1991 which, in fact, triggered wide ranging structural reforms that gave a market orientation to the economy. despite india ’ s growing integration with the global economy, the external sector remained robust for over 15 years after that. the current episode of bop pressures, when the cad is higher than it was at the peak of the 1991 bop crisis ( 3 per cent of gdp ) is, therefore, causing apprehensions about whether we have the capacity to stem the pressures and restore the bop to a sustainable path. 44. the increase in cad is quite evidently a consequence of imports growing faster than exports. ( table - 2 ) 45. the increase in imports is largely accounted for by oil and gold imports. to understand the pressure these two items have put on the bop, it is instructive to note the following. net of oil and gold imports, cad last year would have been in surplus of 3. 8 per cent of gdp in contrast to a deficit of 4. 2 per cent of gdp. the surge in gold imports is explained largely by the erosion in real returns on other assets owing to inflation. the reason oil imports have been price inelastic is due to the fact that nearly 60 per cent of petroleum products pass through an administered price regime ; oil demand to that extent does not adjust to price increases. on the other hand, exports were not helped even though the real