steps from time to time to enhance the transparency in banks ’ operations by prescribing comprehensive requirements for disclosure in tune with the international best practices. in view of the added emphasis on the role of market discipline under basel ii and with a view to enhancing further transparency, banks have been advised on october 19, 2004 that all cases of penalty imposed by the reserve bank as also strictures / directions on specific matters including those arising out of inspection will be placed in the public domain with effect from november 1, 2004. conclusion to conclude, ensuring an acceptable degree of financial stability is a never - ending process. looking ahead, the vulnerability to real sector shocks has the potential to significantly affect financial stability in india. the major sources of shocks in india are very sharp increases in oil prices and extraordinary monsoon failures and other natural calamities with consequent impact on the agricultural sector, spilling over to other sectors of the economy. therefore, the weight to financial stability in india is higher than in many other countries. financial stability has moved to centre - stage nationally as well as in discussions relating to the future of the global monetary and financial system. several factors have brought this about : the disturbing intensity and frequency of financial crises in the decade gone, the move to strengthen domestic financial systems under basel ii and the unfinished quest for the appropriate international financial architecture for crisis prevention and management. unlike in some countries where the responsibility for financial stability has been located in an independent authority, our approach has been to exploit the synergies that exist between the conduct of monetary policy and the function of financial regulation. accordingly, financial stability in india is an integral responsibility of the reserve bank. appropriate governance has enabled us to mitigate areas of conflict of interest even as we have reaped the benefits of ( i ) a deep understanding of the dynamics of india ’ s financial sector – which, in essence, has evolved around the reserve bank over the years – ( ii ) oversight of money, debt and foreign exchange markets and ( iii ) the accumulation of the technical skills associated with regulation and supervision. the experience with the tumultuous 1990s has shown that our approach has stood the test of time in ensuring a stable, vibrant and well - functioning financial system in the country. we have a well - capitalised financial system even by international standards, with low levels of loan delinquency despite our prudential standards being set tighter than international standards. our financial markets are orderly and smoothly functioning and the ability of our financial inter

the population. unfortunately, even while inequality between countries is diminishing today, inequality within countries is increasing. today, even well - run market economies seem to be favouring those who already have plenty. in part, this is because skills and capabilities have become much more important in well - paid jobs, and those born in good circumstances have a much better chance at acquiring these. the winner - take - all nature of many occupations, where a few of the most capable entrepreneurs and the best workers take most of the income ( think apps, architecture or acting, for example ) accentuates the value of early childhood preparation ; and hence the benefit of being born to the right parents in the right community. income inequality is on the rise, with some having colossal incomes and others worrying about the next meal. what can we all do to restore faith in markets? we have to work to provide effective access to schooling and healthcare for all, a non - discriminating job market with many jobs, equal opportunities for further advancement regardless of gender, race or background. all this will increase the perceived legitimacy of wealth and society ’ s willingness to broaden the areas where it is spent. thoughtful philanthropy, as reflected in the founding of this school, can bis central bankers ’ speeches further help enhance society ’ s acceptance of great wealth. finally, as you embark on careers that are likely to be very successful, you should earn by creating perceptible value and, equally, spend to create value. not only will your work be more enjoyable, but you will strengthen the economic freedoms we sometimes take for granted. let me turn briefly to my point about private education. private education across the world is expensive, especially in high - quality research universities, and getting more expensive all the time. that is because the critical resource, good professors, is in short supply. two solutions are proposed. one is technology. why not have the best professors beam lectures at thousands of students over the net? the problem is that while such classes seem theoretically attractive, completion rates are abysmal. we do not finish such courses perhaps for the same reason we do not simply take a course syllabus and read the recommended books in the library – there are too many distractions in life for us to complete without other forms of compulsion. online courses still need to figure out, not just how to get student commitment, but also how to provide the learning support that a university community and environment offers. a second solution is to di