, 2006 for the purpose of obtaining and providing credit information from / to the cic. 25. to conclude, let me say that the credit information business has played a significant role in improving credit offtake and management of credit risk by the credit institutions. an enormous responsibility has been cast on the four credit information companies to see that there is qualitative improvement in credit information. rbi would take suitable regulatory and supervisory measures to make the credit information system safe, efficient, reliable and customer - friendly. i once again thank cibil for providing me this opportunity to share my thoughts with all of you. 26. thank you! bis central bankers ’ speeches

to be shared raises both intellectual and practical challenges. the intellectual challenge is to build a better understanding of the forces driving capital flows, what type of policy instruments, including capital controls, work and in what situations. the practical challenge is the need to reach a shared understanding on an organizing framework for cross border spillovers of domestic policies in capital - originating countries, and the gamut of policy responses by capital receiving countries. 9. managing capital flows involves two important things. first, we need to make a judgment on how important the externalities are. and, second, we need to make an objective assessment of what combinations of policies may be used to minimize their impact. now that it is broadly accepted that there could be circumstances in which controls can be a legitimate component of the policy response to surges in capital flows, policymakers must have the flexibility, and discretion, to adopt macroeconomic, prudential and capital account management policies. importantly, they should be able to do so without a sense of stigma attached to particular instruments. framework for the adjustment process 10. let me now move on to the third issue which is the framework for the adjustment process to secure and preserve global financial stability. the adjustment process should ensure that individual actions of countries add up to a coherent path forward. i want to emphasise two aspects of this. first, the imf ’ s surveillance function is critical – it assumes a vital, pre - emptive role in preserving global and national stability. the forthcoming triennial surveillance review provides an opportunity to take stock of the steps taken and to assess recent experience, including the adequacy of the legal framework for surveillance. second, reserve accumulation has to be viewed in the context of economic growth and development. the insurance that reserves provide against sudden stops and reversals of capital flows far outweigh the opportunity costs of holding reserves. the experience of the crisis has amply demonstrated this. what constitutes an adequate level of reserves is a country - specific question, involving a judgment based on practical experience. clearly, there can be no “ one - approach - fits all ” to such assessments. bis central bankers ’ speeches global reserve currency 11. my fourth point relates to a global reserve currency. the recent crisis has brought home the complex challenges arising from the world having a single reserve currency. in the ongoing search for solutions, one option is to have a menu of alternative reserve currencies which fulfill the required criteria – full convertibility ; the exchange rate determined by market fundamentals