modules. the reporting platform being launched today caters to otc inter - bank usd - inr forwards, fx swaps and fcy - inr options. the platform will be upgraded in subsequent phases to capture other inter - bank foreign exchange derivatives namely fcy - inr and fcy - fcy forwards and fx swaps ; fcy - fcy options ; fcy - inr and fcy - fcy currency swaps ; fcy interest rate swap ( irs ), forward rate agreement ( fra ) and caps / floors / collars ; and all / selective client trades in the above foreign exchange derivatives and rupee irs. over the period, it will be integrated with the reporting platform for the credit default swap ( cds ). in its final shape, this repository structure will not only become a warehouse of information on otc derivatives markets but will also provide post trade processing services for the derivatives contracts, thus enhancing the market efficiency. ccil has been advised to develop various post - trade processing services in consultation with market participants. the repository structure will also be used for dissemination of price and volume data to market participants as well as to the general public. bis central bankers ’ speeches globally, the concept of trade repository is evolving. one of the issues being debated is data portability and aggregability among the trade repositories spanning countries and jurisdictions. the otc derivatives market in india mainly comprises domestic counterparties and hence, extra - jurisdictional issues do not have much significance at this point in time. however, we are alive to the needs of uniformity of standards across the globe and our repository framework should have sufficient flexibility to conform to international standards and best practices as they evolve depending upon their relevance in the indian context. this is a task for ccil. it is well recognised that there are significant economies of scope between central counterparty functions and repository functions. yet, the two have some fundamental differences inasmuch as one involves taking risky positions while the other is a pure service function without any exposure. the rbi working group on the subject has accordingly recommended a subsidiary model for the repository function of ccil, to preserve an arm ’ s length between ccp function and repository function of ccil. this is in line with best corporate governance practices. i am sure this aspect will be dealt with by ccil as the reporting system consolidates. to conclude, i am pleased to observe that we are among the first few jurisdictions to have fulfilled the g - 20

we can because of the length of time it takes for monetary policy changes to have their full effect. our task would be far less challenging if we could predict the future with great confidence. the point i want to emphasise is that monetary policy is in the end an art rather than a precise science, no matter how much science we try to bring to bear on the process. but in looking ahead each member of the mpc has to try to distinguish between what we actually know, what we think is the most likely outcome, and what we fear could happen - we cannot simply act on a hunch. we then have to watch the evolving situation measured against our central expectation for signs that prospective inflationary pressures are proving to be either weaker or stronger than we had, individually, anticipated, adjusting our policy view accordingly. given the uncertainties, it should not surprise you that the committee members disagree more often than not, but usually at the margin, on what should happen in any particular month to interest rates. i regard that as a strength rather than a weakness of the process. it should not surprise you either that even though we consistently aim to hit the target, we rarely achieve it precisely. as a matter of fact, i have been genuinely, and agreeably, surprised that the outcome over the past few years has been as consistently close to the target as it has been. the best we can realistically hope for is that we come close on average and over time. and to achieve that, when we identify developments which are likely to move us away from our target on one side or the other, we must be ready symmetrically to adjust our policy to bring us back on track. that is why, even though the economy as a whole continues to perform relatively well on the data, we have moved interest rates downwards this year, to reflect the emergence of the new downside risks ; and it is also why we indicated, in our recent press release, that we will continue to monitor those downside risks. that is not a promise of further interest rate reductions, but it is a promise that we are prepared to move further if we have evidence that those risks are increasing. given our starting point, with inflation somewhat below target and expected to remain so for a while, we are relatively well placed to weather the storm if it begins to blow more strongly.