the role of it in this initiative is very significant and fundamental. more needs to be done here. we need to integrate account opening and kyc related requirements with other systems such as aadhar, allow use of funds without actual movement of cash, and ensure that the common persons have access to banking and financial services at their door steps. varied technical solutions have the potential to achieve this and at reduced costs. finding the right mix and adapting them for achieving the financial inclusion in the shortest possible time is a big challenge. 12. if the banking system has to meet these challenges squarely, the academics, the industry and banking professionals have to work together. idrbt provides perfect settings bis central bankers ’ speeches for such a joint action. the cios forum and cisos forum coordinated by idrbt are the right channels. i am sure that these coordinating fora will be successful. 13. finally, as regards this award function, as we will all fully endorse, recognition of good work done is always a successful motivating factor. idrbt has been continuing to host these awards. i would also congratulate all the winners and hope that they will ever increase the bar ; i look forward to more banks joining the pride of place in the years to come. 14. thank you all for your patient attention. bis central bankers ’ speeches

is now widely recognised that the performance of agriculture is critical not only for output and employment but also, particularly for price stability. while over 60 per cent of the workforce is dependent on agriculture, the sector accounts for barely 20 per cent of the gdp. second, alongside shortfalls in agricultural performance, large gaps have emerged in the physical infrastructure. rapid growth in demand for infrastructure with a less than proportionate supply response in the prevailing investment climate has resulted in stretching of the capacity utilisation in electricity generation, roads, ports and major airports. third, domestic developments in 2006 - 07 in terms of firming up of inflation through the year, led mainly by rising prices of primary articles, has been a matter of concern. monetary and financial conditions are reflecting these demand - supply gaps as well as the onset of a durable pick - up in aggregate spending. the acceleration of growth in the real sector has been reflected in the upward shift in the growth trajectory of non - food credit extended by commercial banks. the expansion in non - food credit at 29. 8 per cent in the period 2003 - 04 to 2006 - 07 is unprecedented in the history of the indian economy. there has been some sign of deceleration in the recent period as growth in year on year non - food credit was 27. 2 per cent as on may 11, 2007 as compared with 32. 3 per cent during the same period last year. in consonance with the rising capital flows, the reserve money growth has been higher in the recent period averaging 17. 8 per cent during 2003 - 07. the rate of growth of reserve money was 23. 3 per cent as on may 18, 2007 on year on year basis ( 20 per cent a year ago ). similarly, the high credit growth in the recent period has led the money supply growth to remain high averaging 16. 7 per cent during 2003 - 07. during 2006 - 07, the money supply grew by 20. 7 per cent. as on may 11, 2007, the growth in money supply on year on year basis was 20. 2 per cent ( 18. 2 per cent a year ago ). taking into account the high expansion of money supply worldwide, and given the monetary overhang of 2005 - 07, it is important to contain monetary expansion in 2007 - 08 at around 17. 0 - 17. 5 per cent, in consonance with the outlook on growth and inflation. the annual policy statement for the year 2007 - 08 also placed aggregate deposits growth in