. growing global financial integration, financial innovation and evolution of new financial products and massive use of electronic technology in financial services have made our job even more challenging. 4. emerging asian market economies are now characterized by rapid financial globalization andintegration which has contributed to increased volatility of capital flows and rapid transmission of financial crises. deepening and broadening of the financial sector has created more financial risks and vulnerabilities in the financial system of our economies. the presence of informal markets and shadow banking which often leads to a weaker transmission of the monetary policy has made the central banks ’ role more challenging. increasing new financial products triggered by sophisticated information technology, massive bis central bankers ’ speeches cross - border capital flows resulting to volatility in exchange rates and uncertainty of the spillover effect in the domestic economy are added challenges for we central bankers towards making our financial system more stable, inclusive, and economic growth friendly. 5. these challenges call upon the central bank authorities to recast monetary policy objectives and instrument, to strengthen regulation and supervision and exercise macroprudential measures as a complement to monetary policy. priority has to be accorded in identifying all the sources of risk and imbalance that can have systemic implications for the economy ’ s growth and stability. our monetary policy also needs to address how financial resources are better allocated to promote growth and jobs along with ensuring macroeconomic stability. furthermore, there is a need to effectively integrate or coordinate monetary, regulatory and supervisory functions into coherent frameworks for the maintenance of financial stability and promotion of inclusive economic growth. 6. this 49th governors ’ conference and high level seminar aims to discuss some of these pertinent issues. what we have learnt is that financial system can have robust growth and can be stable only in an environment of real economy growing in a sustainable manner. thus a strategy to promote economic growth must be an integral part of the financial sector development strategy. deliberations and discussions on these important subjects have drawn the interest of the global leaders including the central bankers and international financial institutions, particularly after the recent financial crisis. we will have the opportunity to hear thoughts and views on these relevant topics from the distinguished speakers from renowned institutions. i hope that it will be very much rewarding to all of us. 7. for many of you, this may be the first time in nepal or you may be visiting nepal after an interval. i hope that your stay in nepal will be refreshing and memorable one. you will have an opportunity to explore more about our

many have identified trusted intermediaries with access to the target group to deliver financial education. this approach can be effective, provided that the goals of the intermediary are aligned with the financial education goals, and that the staff are properly trained and incentivized to provide financial education. countries need to design programs to ensure people can make sound financial decisions, select financial products, which best suit their needs, and know how to use related channels, such as atms or mobile banking. however, more research and evaluation is necessary to further explore the relationship between financial literacy and financial inclusion, and to identify the impact of financial education initiatives on financial inclusion. ladies and gentlemen, with respect to technological advances, digital technologies are important for inclusion, as they enable innovative and lower - cost business models for providing financial services, making it viable to reach the poor. about 260 million unbanked adults in the developing world receive private sector wage payments in cash. switching to digital payments could potentially save significant time and resources for businesses and workers alike. likewise, agricultural payments present another chance to expand access to the formal financial system, as roughly 440 million unbanked adults in the developing world are paid in cash for farm goods. by moving away from cash and using digital payments to distribute social benefits and wages, governments can reduce costs and leakage. in the developing world, about 120 million unbanked adults receive government transfers in cash, according to the world bank ’ s global findex database 2014. at the same time, more than 31 million unbanked adults in emerging countries are paid government wages in cash. digitizing these payments could bring millions of adults into the financial system for the first time. likewise, 355 million adults in developing countries with an account send or obtain domestic remittances in cash or over the counter. further, 1. 3 billion adults with an account in developing countries pay their trash, water, and electric bills in cash, and over half a billion adults with an account in developing countries pay school fees in cash. access to digital payments generates opportunities to provide more convenient and affordable payment options. as we continue to adopt innovative financial inclusion models, we need to be positioned at the forefront of these developments in order to identify and manage the associated risks. more importantly, we need to be equipped with thorough knowledge of innovative business models to develop an enabling ecosystem for innovative financial inclusion to flourish in a safe and stable manner. ladies and gentlemen, allow me now to share with you some of