country, with special emphasis on rural and agricultural credit. and if we can do this in the next one year, it would be a major milestone in india ’ s growth story and journey towards india @ 2047. 18. another example of tech - enabled regulatory innovation by the rbi is the account aggregator ( aa ) framework. this is an important step towards realising the potential of empowering millions of underserved customers to digitally access and share their financial data across institutions in a secure and efficient manner. the framework has been expanded to include institutions regulated by sebi, irdai and pfrda. this is a progressive step to help customers gain control over their financial data and use it for accessing a variety of products including credit, insurance, investments for their own benefit. centralised kyc ( ckyc ) and video kyc are other enablers to facilitate seamless onboarding of customers in a digital and cost effective manner. we are giving greater focus on these initiatives. 19. the reserve bank is committed to take more such initiatives with the support of all stakeholders. in this endeavour and in collaboration with the stakeholders, three exciting new products are being launched later today. two of these pertain to enhancing the feature set of upi by facilitating small value transactions through ‘ upi lite ’ and linking credit cards to upi. the third initiative is the enablement of cross - border inward bill payments using bharat bill payment system ( bbps ). 20. the emergence of fintech players and the growing popularity of their innovative products have challenged the existing players in financial services in maintaining their market share, margins and customer base. the incumbent firms are responding to these challenges by adopting various strategies, which include making investments in fintech companies and partnering with them. they are also enhancing their in - house capabilities to adapt to the new realities. 21. a wave of changes brought in by fintech have had a positive impact in terms of enhancing inclusion and further penetration of financial services. at the same time, these developments have also ushered in an era where enormous amount of consumer data is being generated and leveraged upon by a few entities ( the so called bigtechs ) by virtue of their huge customer base. such developments raise concerns on concentration risk and potential spillovers as their level of engagement with the financial system strengthens in the years to come. therefore, potential risks to public policy objectives of maintaining competition, market and business conduct, operational resilience, data privacy, cyber security

monetary policies aiming at implicit inflation targets together with certain monetary aggregates as intermediary targets to an explicit inflation targeting regime. there are certain preconditions to be met for a successful implementation of inflation targeting regime. first central bank must have strong team of economists, well functioning transmission channels and the instrument to guide the policies. in this respect the central bank of turkey reorganized its research and monetary policy department and increased the number of economists with phd ’ s. we have strengthened the research capacity and the analytical power of the department. at the start of the program, high debt to gdp ratio was a problem for debt sustainability and there were high uncertainties about the transmission mechanism. and also due to the high and chronic 30 years of inflation there was not a solid track record of credibility. between 2002 and 2005, the period of implicit inflation - targeting trichet, j. c. ( 2007 ). “ hearing before the economic and monetary affairs committee of the european parliament ”. brussels, march 21, 2007. regime, the central bank tried to build up its credibility by setting inflation targets together with the government and achieving them. during the last 5 years ’ period debt to gdp ratio fell to sustainable levels, with significant developments in credit markets and a downfall in dollarization levels, which strengthened the transmission mechanism to a large extent. also the mpc assumed the role of a decision making body, from an advisory one. the currency reform was also a necessary condition for successful it implementation as the currency with many zeros kept the inflation memories in the public mind alive. that is why we dropped 6 zeros from the currency during the implicit inflation targeting period. meanwhile, economic agents adjusted to floating exchange regime and the short - term interest rates were set as the only policy instrument. and finally we established the communication department, which is a must for it implementations. having fulfilled the necessary groundwork, the central bank adopted fullfledged it in 2006. at the beginning of my speech i said that the divorce between paper money and the gold was the reason for some countries setting up central banks anew and broadening the mandates of the existing ones. we must then ask why people are willing to hold and use paper money. this is a very important question, and the answer is they expect the future value of the money to remain stable because the future price level will remain stable. this is a matter of great trust. but to whom do the people trust? they trust to the body, which is responsible for