too. thus, in the initial stages of evolution of oversight structure for regulation and supervision of payment and settlement systems, a greater attention may be given to systemically important payment systems ( sips ) as compared to retail payment systems, for obvious reasons, especially as these sips usually handle payments of large value and settlement of inter - bank transactions emanating from financial markets pass through such systems. however, as regulatory attention on these large value payments get stabilised and simultaneously developments in retail payment mechanisms evolve, the span of oversight attention widens to encompass these systems as well. let me briefly highlight some of the issues that merit attention in the context of retail payment systems. i am not sure whether a standard definition of “ retail payment system ” has been given anywhere, but a reference to the “ glossary of terms used in payment systems ” ( by cpss – committee on payment and settlement systems ) shows that “ retail payments ” are defined as mainly consumer payments of relatively low value and urgency. accordingly, “ retail funds transfer system ” is defined as a “ system which handles a large volume of payments of relatively low value in such forms as cheques, credit transfers, direct debits, atm and eftpos ( electronic funds transfer at point of sale ) transactions. even going by this working definition, what clearly emerges is that the user base for retail payment systems is very large as they touch every economic activity in the country and even cross - border transactions of such nature. in terms of volumes, paper - based and electronic retail payment systems far exceed the large value payment transactions, while they may be lower in terms of value. efficient retail payment systems bring in operational efficiencies for all commercial activities and greatly facilitate e - commerce. recent developments in payment systems, aided by developments in information and communication technologies, have provided customers with a wide array of choices, demanding greater levels of efficiency and safety in their operations. further, final settlement of transactions from many of these retail systems may also occur in one or the other large - value payment systems, increasing their systemic importance. thus, such retail payment systems, even though they are not sips, can be aptly called as systems of system - wide importance. oversight arrangements of such systems should, therefore, not lose sight of this relevance of retail payment mechanisms in the larger economic context. the presence of a sound legal framework greatly enhances the efficacy and efficiency of the oversight function. in india, we have recently enacted the payment & settlement

where the riksbank would want to be able to do so on some future occasion, eg with a view to avoiding the risk of recession and falling prices. the riksbank hardly has better prerequisites than investors in the market to determine whether a so - called speculative bubble is developing. if a speculative bubble is involved, it will sooner or later burst. however, it is then the riksbank ’ s duty to counteract a fall in inflation by an energetic interest rate policy at the same time as it limits the damage of the fall in demand that could ensue. bank of japan ’ s april report of recent economic and financial developments1 bank of japan, communication, 12 april 2000. * * * the bank ’ s view2 the improvement in japan ’ s economy is becoming distinct. recovery has started in some areas of private demand, as seen in a gradual upturn in business fixed investment. with regard to exogenous demand, net exports ( real exports minus real imports ) continue to follow an upward trend due to an upturn in overseas economies, and public investment has started to pick up reflecting the progress in the implementation of the supplementary budget for fiscal 1999. as regards domestic private demand, housing investment is decreasing moderately, and recovery in private consumption continues to be weak through lack of notable improvements in employment and income conditions. meanwhile, business fixed investment is starting to pick up albeit moderately. reflecting such developments in final demand, industrial production is increasing, and corporate profits and sentiment continue to improve. firms as a whole still strongly feel that they have excess capacity and employees, and that they should reduce their debts to restore financial soundness. nevertheless, the number of firms that take positive action, such as increasing the amount of fixed investment, is increasing gradually, especially in high - growth sectors. regarding employment conditions, although the decrease in the number of employees and in wages is slowing, efforts by firms to reduce personnel expenses have prolonged the severity of households ’ income conditions. as for the outlook, public investment is likely to increase for some time. this, along with the favorable financial environment created partly by the bank ’ s monetary easing, is expected to continue underpinning the economy. moreover, net exports are likely to follow an upward trend reflecting the recovery of overseas economies, and it is also highly probable that business fixed investment will increase gradually with an improvement in corporate profits and sentiment. however, housing investment is expected to continue declining moderately, and there seems to be no