discussion ownership of customers. the implementation of a successful mobile banking product requires seamless flow of payment instructions across mobile operators. the successful partnering of banks and msps would also need the resolution of the issue related to customer ownership. the discussion on mobile banking often leads to the issues of ownership of customers. the msp's by virtue of being the owners of the mobile customer claim that mobile banking is only an value added service ( vas ) enabled by them. the banks claim ownership of the banking customer and feel mobile only being an additional access channel similar to internet. 5. transaction charges 5. 1 on the reported second advantage of low transaction charges, let me again quote from the cgap report. a fund transfer of 1, 000 ksh ( kenyan shilling ) would cost the remitter 30 ksh and the recipient 25 ksh if the recipient is a registered customer and upto 75ksh of the recipient if not a registered recipient. in comparison a bank to bank fund transfer of rs 1 lakh in india using neft would cost only rs. 5 / – for the customers. the charges mandated by rbi make all account to account fund transfer models as the cheapest mode of remittance in india. 5. 2 information and communication technology based solutions hold the key in promoting financial inclusion in the country. currently, number of projects using smart card solutions with biometric authentication have been implemented in the country. in such arrangements the account details and the transaction data are stored on the smart card held by the account holder. agents of bcs, who are given hand held point of sale terminals are be approached by the customers for carrying out any transaction. similar, solutions based on high end mobile phones have also been implemented. in this arrangement, all transaction data are held on the mobile phone. the customers are given only receipts of their transactions / account statements. 6. financial inclusion 6. 1 in this regard we recognize that mobile phone can be an important mode for propagation of financial inclusion in the country. the coverage of mobile phones and the use of such instruments by all section of the population can be exploited for extending financial services to the excluded populations. a comparison of the smart card based and mobile solutions would show that both technologies have their advantages. a mobile based product for extending financial inclusion would permit the customer to carryout transactions independent of agents of bcs. the agents would only be required for enrollment, cash deposit and cash withdrawal. whereas, in a smart card based technology

ways and means advance, which were the critical prerequisites for the evolution of money, government securities and forex markets. i recall that when i joined as governor three years ago, i emphasised the continuity and change aspects of the policy. this is a defining characteristic of the indian reforms, which have been described as cautious. shri vajpayee, the then prime minister, and shri jaswant singh, who was then the finance minister, supported this approach. shri singh provided strategic guidance and put full trust in my professional skills and judgment. in fact, i believe that, over the fifteen years of reforms, all our leaders with their diverse backgrounds, and their varied qualities, have contributed to an economic policy in india that has given us some pride today and great hope for tomorrow. on the present status of the banking sector, admittedly, there is scope for considerable improvement. yet, its strength and resilience in ensuring growth and stability have been recognised universally. in the major emerging economies, we compare favourably in the services sector and are seeking to compete in the manufacturing sector while we try to catch up on the fiscal and infrastructural fronts. however, it is in the financial and banking sectors that we are unarguably ahead. our banking sector reform has been unique in the world in that it combines a comprehensive reorientation of competition, regulation and ownership in a non - disruptive and cost - effective manner. indeed our banking reform is a good illustration of the dynamism of the public sector in managing the overhang problems and the pragmatism of public policy in enabling the domestic and foreign private sectors to compete and expand. similarly, the financial sector of india as a whole exhibits vibrancy and resilience. the government securities, money and forex markets have significant public policy implications for a gradually - opening emerging market economy. these have developed during the reform period, with impressive diversification of participants and instruments. the institutional, technical, and micro - structural aspects of the indian financial sector are in alignment with the best global standards. here, again progress achieved in financial sector is a testimony to the healthy evolution through mutual cooperation amongst government, monetary authority, regulators, and above all, diverse market participants – domestic and foreign, in public as well as in private sector. reflecting on future prospects in banking, immediate focus has to be on the cleaning up of the remnants of undercapitalised banks, while concentrating on improvements