piecemeal those efforts towards revamping the regulatory architecture had been. 4 a microprudential approach to supervision coupled with information gaps and asymmetries limited the ability of supervisors to monitor risk exposures, risk transfers and threats to systemic stability. indeed, a recent world bank study on differences in regulatory and supervisory practices across 143 jurisdictions comprising both advanced and emerging economies highlights the fact that not only did crisis countries allow for less stringent definitions of capital but they also had less strict exposure limits. 5 in addition, several “ too - big - to - fail ” institutions remained outside the regulatory perimeter. the comingling of rating and advisory services by credit rating agencies perhaps gave a false sense of comfort to the supervisors. furthermore, misalignment in incentives between home and host supervisors impeded cross - border information sharing. although institutions became international in scale and scope of their operations, regulation remained predominantly national in character, eroding the efficacy of the supervisory apparatus. in response to these deficiencies, the leaders of the g - 20 mandated the financial stability board ( fsb ) with enhanced role and responsibilities to promote effective regulatory and supervisory policies. as part of this agenda, the basel committee has prepared new capital and liquidity requirements for banks. the basel regulatory framework rests on three pillars : pillar i : minimum capital requirements ; pillar ii : supervisory review and evaluation process, and pillar iii : market discipline. first, the quality of capital that a bank holds has been adam smith. an inquiry into the nature and causes of the wealth of nations [ e - book, 2009 ]. ( book ii – of the nature, accumulation and employment of stock ; chapter ii : of money, considered as a particular branch of the general stock of the society, or of the expense of maintaining the national capital ). r. g. rajan ( 2010 ). fault lines : how hidden fractures still threaten the world economy. princeton nj : princeton university press. world bank ( 2012 ). global financial development report ( rethinking the role of the state in finance ). the world bank : washington dc. bis central bankers ’ speeches improved along with the inclusion of two buffers : a microprudential capital conservation buffer designed to cushion banks during periods of stress overlaid with a macroprudential countercyclical buffer, to be applied by national authorities to smooth cyclical swings. this has been supplemented with a backstop leverage ratio requiring banks to hold a minimum amount of equity as proportion

factor which determines the success and sustainability of the company. no existing m - commerce player is organized for it. very few yet are thinking in these terms. one who desires to enter this field must evaluate its “ delivery ” capability. 2. 3 second important issue in m - commerce or e - commerce is the need for collaboration between technology service provider and provider of goods and services. if it is m - medicine, we require collaboration between mobile service provider and health / medicine service provider. similarly, in e - broking, we require collaboration between technology partner and broking service provider. similarly, in m - banking or m - payment, we require collaboration between mobile service provider and banking / payment service provider. we cannot and should not think of, at the initial stage, mobile payments without bank accounts. 2. 4 it will also be useful before debating on any alternative modes for banking / payment delivery or concluding that banks have failed in providing financial inclusion, to consider the following three aspects related to the payment delivery and banking technology in india : – i. banking technology is of recent origin in the country. scaling up may, therefore, require more time. ii. payment is only one aspect of banking. financial inclusion goes beyond remittances. other products and services are required which banks are better equipped to provide. iii. given the above aspects and that the enabling provisions like appointment of business correspondents have been permitted only recently, it would be early to conclude that banks have not been successful. i hasten to add that if the banks continue as laggards, the system will have to look for alternate non bank model. the important end of inclusive growth cannot suffer on account of our insistence on a particular means / model. 3. evolution of electronic financial services ( e - banking / e - commerce / m - banking / m - commerce ) 3. 1 payment methods in the settlement of transactions for goods and services have evolved over the years as a result of innovations and developments in technology and business practices. from the earliest known barter systems to the cash - based approach and later, to other paper - based payment instruments, the progress in the payment methods was a relatively gradual one. however, due to rapid strides in technology, more efficient payment methods have evolved, mainly in the last few decades. electronic mode funds transfer has afforded an efficient and secure means of transferring funds between bank accounts and is fast displacing paper - based payment methods. 3. 2. reserve bank of india