( ltro ) and special open market operations ( operation twist ) were also conducted to support growth. most importantly, the liquidity was closely monitored and to avoid falling into a liquidity trap, all the rbi liquidity measures came with sunset clauses. 10. the dislocations in everyday activity and access to finance brought to the fore solvency concerns across individuals, small and large businesses, and raised fears of impending asset quality stress among banks and financial institutions. the rbi responded with a volley of regulatory measures that included a loan moratorium, resolution frameworks 1. 0 and 2. 0 to facilitate restructuring of viable but distressed loans, etc. rbi also deployed its macro - prudential toolkit using various counter - cyclical measures. like liquidity, even here the rbi followed a calibrated approach with sunset clauses. for instance, the covid resolution packages set out parameters to ensure that viable borrowers are benefited, and the dispensations are available only for a finite window. meanwhile, banks were advised to raise capital and restrictions were placed on dividend payments in early days itself so as to conserve the capital of banks and improve their risk absorbing capacity. 2 / 7 bis - central bankers'speeches 11. even before onset of the pandemic, rbi had used innovative ways in resolving distressed institutions without requiring infusion of tax - payer money, while safeguarding depositor interest. instead of applying traditional template of merger of a weak bank with a strong domestic bank or government bailing out a bank, innovative approaches were adopted. in the case of yes bank, a group of banks came together to infuse capital to revive the bank. in the case of punjab and maharashtra co - operative bank a market - based resolution through the expression of interest route was used. for, lakshmi vilas bank, a foreign bank, albeit through wholly owned subsidiary1 route, was allowed to acquire the operations. 12. issues relating to governance, assurance and supervision were at the root cause of many of the problems. however, i believe that all stakeholders of financial sector, including government, regulators and regulated entities have dealt with the challenges of last decade in a collaborative, calibrated and innovative manner. overall, the financial sector and reserve bank have learnt and grown from these experiences strengthening the institutional architecture, the regulatory framework as well as the financial system. 13. on the supervisory front several initiatives have been taken with the overarching vision of being able to provide a sound forward looking

assessment of material risks. improving offsite capabilities and making supervision more system and process driven. illustratively, banks are required to have automated system - based asset classification with limited exceptions and tighter controls over such exceptions. 14. in october this year, rbi released daksh, a web - based end - to - end workflow application that will inter - alia facilitate better monitoring of compliance by supervised entities. offsite being data dependent, measures have been taken to strengthen the quality of data inputs. an endeavour is also being made to increase the use of advanced analytics, artificial intelligence and machine learning to assess material idiosyncratic and systemic risks so that risks can be proactively identified and mitigated. use of such techniques opens up a range of possibilities especially in monitoring and analysing unstructured data such as board notes, complaints, analyst reports, news, social media, etc. to provide leads on emerging supervisory concerns. 15. while we are strengthening offsite with greater use of sup - tech, the human element and onsite has not been forgotten. the college of supervisors has devised a bouquet of programs that caters to capacity building at all levels from foundation course for new recruits to refresher programmes for supervisors. further, a conscious attempt has been made to increase the two - way interactions with management of banks and financial institutions as well as statutory auditors to understand each other's perspective and gain an insight into various concerns. 16. these efforts are bearing fruit. today, i am happy to note that the indian banking sector is strong, stable and resilient poised to support economic growth. emerging issues 17. while we have managed to restore our financial system to health, it is not the time to rest, as challenges remain. having discussed the challenges of the last decade, i would like to discuss three emerging issues, namely, ( i ) the risks spill over from global 3 / 7 bis - central bankers'speeches events, ( ii ) the paradigm shift in banking driven by technology and ( iii ) potential use of data. a. spill - over risks from global events 18. events such as the russia - ukraine conflict reiterate the view that in today's interconnected globalised economy, no one is insulated from seemingly isolated events in a distant land. india does not have many trade linkages or dependence upon ukraine. however, we are bearing the second order inflationary effects through various transmission channels and overall global slow down