clearing system was critical ". i agree that the coverage of the rtgs undoubtedly needs to be expanded over a period. this would require upscaling of its operations in terms of capacity and speed, for which efficient and effective transition to the rtgs system and its stabilisation would be essential. it is necessary to explore all the issues in a comprehensive manner that would arise in rapid upscaling of rtgs in our country. further, several strategic measures may be necessary to popularise and encourage the use of the rtgs by the financial intermediaries, consistent with the efficacy and capacity of the rtgs system. we would, no doubt, be happy to gain from your experience and share our experience, in the days to come. we have formulated a ‘ payment and settlement systems vision ’ document for the use of banks, financial institutions as well as the general public. the vision document outlines the short - and medium - term plans of the reserve bank for the various payment and settlement systems in the country. the broad contours outlined in the document enable the banks to plan their initiatives in tune with the perspectives laid down in the vision for the country as a whole. it is noted that the spread and reach of the payment services are often confined to certain sections of the society especially in the early stages of development. the provision of payment services by the banks to all and at affordable rates is an important requirement for a more balanced and equitable socio - economic development. we, in india, have been attempting an active approach towards financial inclusion in the recent past. hence, access to funds transfer services at economical rates to the vast majority of the country ’ s population would be essential for securing financial inclusion as also for reducing the dependence on non - banking channels for remittance of funds. infact, i agree with shri narayana murthy when he said : " the retail payment systems need to be improved by developing appropriate applications and userfriendly websites with simple interfaces and local content ". perhaps knowledge of payment systems could be an element of intensive campaign for financial education that rbi intends launching soon. an aspect closely related to the above is the need for providing adequate legal backing for transaction processing in a high - technology environment. most of the countries in the world have a supporting legal framework in place for the purpose, while several others are in the process of enacting statutes to meet the requirements of a technology - driven processing environment. in view of the large - scale and rapid

banking and non - banking sectors. we have been taking several steps to strengthen the regulatory and supervisory frameworks in order to increase the resilience of the banking system. new guidelines have been issued for resolution of stressed assets, which will sustain the improvements in credit culture. 16. in the non - banking sector, the reserve bank has recently come out with draft guidelines for a robust liquidity framework for the nbfcs. we are also giving a fresh look at their regulatory and supervisory framework. it is our endeavour to have an optimal level of regulation and supervision so that the nbfc sector is financially resilient and robust. the reserve bank will continue to monitor the activity and performance of this sector with a focus on major entities and their interlinkages with other sectors. the reserve bank will not hesitate to take any required steps to maintain financial stability. 17. we are also taking a number of steps to improve commercial viability of urban co - operative banks ( ucbs ). these steps include proposed establishment of an umbrella organisation and a centralised fraud registry for ucbs and governance reforms at the board level. we are also encouraging voluntary merger and consolidation in the sector to help reduce operating costs, diversify risks and economise on capital. interplay between inflation and growth objectives 18. at the end, let me highlight the role of the reserve bank in the context of the mandate under the reserve bank of india act, 1934 : “ to regulate the issue of bank notes and the keeping of reserves with a view to securing monetary stability in india and generally to operate the currency and credit system of the country to its advantage ”. this mandate has been interpreted over time as to maintain price stability, financial stability and economic growth with the relative emphasis between these objectives governed by the prevailing macroeconomic conditions. this role of the reserve bank has been restated as per the amendment in the rbi act in may 2016 according to which “ the primary objective of the monetary policy is to maintain price stability while keeping in mind the objective of growth ”. therefore it has been our endeavour in the reserve bank to ensure price stability under the flexible inflation targeting regime and simultaneously focus on growth when inflation is under control. 19. in a flexible inflation targeting framework, a delicate balance needs to be maintained between inflation and growth objectives. the relative emphasis on inflation and growth depends on prevailing macroeconomic scenario, inflation and growth outlook and signals emerging from incoming data. post global financial crisis, it has been recognised that price stability may not