hall meetings held at periodic intervals to serve as a forum for feedback. each of these fora have evolved into vibrant platforms for deliberating and sorting out policy and operational issues with specific focus on this sector. i would urge the industry bodies, including assocham, to use these platforms extensively to deliberate on critical issues ( and not merely raising rhetoric for reducing interest rates ) and put forward suggestions for policy interventions. conclusion 21. before i conclude, let me reemphasize that an entrepreneur would feel empowered when he / she is able to bridge the asymmetry of knowledge. there is no better way to do this than peer help. be it in skilling, assisting or hand holding, the industry bodies have a major role to play in empowering the msmes. international experience, you might know, is towards industry bodies serving as peer counsellors for small businesses. i visualize a significant role for industry associations like assocham in empowering the entrepreneurs. i am happy that assocham has been actively working in this area and the report released today is a testimony to their efforts. 22. i stated this at the close of my address last year and at the cost of repetition, would like to re - emphasize the importance of borrower education ( especially for small businesses ). bis central bankers ’ speeches the banks and borrowers share a symbiotic relationship and hence, both the lenders as well as the borrowers have to understand their basic responsibilities, co - operate with each other and adhere to a general code of conduct and discipline. we have to realize that only if the business survives would both, the borrowers and the bankers flourish. 23. as i said at the beginning of my address, the msmes are key to a sustainable economic growth and hence, it is in our collective interest that these enterprises thrive. to paraphrase mao - tse - tung, “ let a billion msmes bloom! ” to paraphrase mao - tse - tung, “ let a billion msmes bloom! ” i thank assocham for inviting me to share my thoughts and wish the conference great success. thank you! bis central bankers ’ speeches

, etc. 26. reserve bank of india issues universal banking licence to foreign banks for conducting all type of banking business. there is no restriction as to the type of business to be conducted through branches unlike in some other countries where restrictions are placed on foreign bank branches on acceptance of retail deposits, conducting business in local currency, types of clientele, availability of deposit insurance, access to clearing and settlement systems etc. once established, the regulation is non - discriminatory in india, as foreign banks enjoy near national treatment in the matter of conduct of business. as indicated earlier, on account of the typical requirements of the economy, it is our desire and expectation that the foreign banks offer commercial banking with a view to ensure further penetration of banking activities. needless to indicate that in the process foreign banks could diversify their risks and also it helps to tap the available latent opportunities. growing the inorganic way 27. there have been requests on whether reserve bank would allow foreign banks to expand inorganically to explore possibilities for acquisition of banks operating in india. in this regard, the stance of reserve bank has already been conveyed in the framework of wos of foreign banks in india. to repeat, it has been stated that once wos are in operation for a while and after a review is made with regard to the extent of penetration of foreign investment in indian banks and functioning of foreign banks, woss may be permitted to enter into mergers and acquisitions with private sector banks in india, subject to the overall foreign investment limit of 74 per cent. since mergers and inorganic growth are natural phenomena, it is likely that over a period of time a number of small institutions may look in for such possibilities to reap benefits of economies of scale and the attendant gains. at the same time, as the population needing basic financial services increases and more opportunities unfold, more entities would like to establish presence within the gamut of policy on entry of new banks and the existing foreign banks would be making exploratory inroads into hinterland to seize the opportunities. however, depending upon the developments in the banking system and the needs of the economy, reserve bank would review the policy on the presence of foreign banks in india at an appropriate point of time. conclusion 28. to conclude, india has a long history of welcoming foreign banks, while cautiously allowing its expansion, keeping the country ’ s needs in perspective. india offers ample scope for growth for the foreign banks in universal banking, more specifically in the highly sophisticated and profitable markets