of corporate leadership vis - a - vis corporate performance is, perhaps, best illustrated by the relative impact of the global financial crisis on major financial institutions. the severity of the crisis has forced academics, regulators and policymakers to do some serious rethink on the current financial system. many have also seen this crisis as a failure of leadership, both on the regulatory and participant sides of the financial universe. debates and discourses on the current regulatory architecture have also since got more intense and louder. much as the regulatory issues have become more and more complex and nuanced, the role of the leaders in the system has also got increasingly in focus, both for future financial stability, as also for efficiency and innovation. this, indeed, is a time for transformation. there are, in fact, significant differences between change and transformation. change is the way things will be different, and transformation is how you move people through the stages to make change work. change is a shift in the externals of any situation, for example, setting up a new programme, restructuring a business, moving to new location, or a promotion. by contrast, transformation is the mental and emotional transition that people must undergo to relinquish old arrangements and embrace new ones. there are other distinctions too. change is made up of events, while transformation is an on - going process. change is visible and tangible, while transformation is a psychological process that takes place inside people. change can happen quickly, but transformation, like any organic process, has its own natural pace. change is all about the outcome we are trying to achieve ; transformation is about how we will get there and how we will manage things while we are en route. getting people through the transition is essential if the change is actually to work, as planned. it is important to ensure that change management strategies are driven by the changes that need to occur, but that they do not lose focus on the more personal transition activities needed to ensure the success of the programme. transformation occurs as a result of a well - orchestrated and well - led change strategy and transition plan. the result is a metamorphosis to the desired state in which there is a deep seated adoption of the changes and the associated values, principles and / or processes. this leads to an embedded, and marked, change in organizational culture and reinforces a journey of continuous improvement. transformational leadership clearly, transformational leaders have a role to play in the today ’ s organizations to effectively cope with the rapidly

to be through repos and reverse repos at rates reset by the rbi periodically, if not daily. pending upgradation in technology and legal / procedural changes to facilitate electronic transfer and settlement, the rbi operationalised an interim liquidity adjustment facility ( ilaf ). under this facility, injection of liquidity to banks / pds is by way of collateralised lending at predetermined interest rates and absorption of liquidity is by way of fixed rate repos. an internal group in the rbi has been set up very recently to consider further steps towards a liquidity adjustment facility by considering interrelated aspects of making the bank rate a true signalling rate, delinking bank rate from repo operations and substituting ilaf with laf. this would also imply that liquidity support to pds will need to be reviewed. regarding pds, the view is to move over from the system of liquidity support at a fixed interest rate in phases. in the first phase, the additional collateralised lending facility could be at a variable interest rate. in the second phase, both level i and level ii liquidity support could be at a variable interest rate and in the final phase only a minimum level of support could be assured without any assurance regarding the rate. the timing, phasing and sequencing are all issues that need to be worked out. while the pds may prefer the comfort of assured liquidity at a fixed interest rate, the compulsions of liquidity management and interest rate operations demand that we ensure alignment between support to pds and other monetary operations of the rbi. the real issue is one of smooth transition from assured liquidity support at pre - determined interest rates to a market determined liquidity support from rbi. pds may discuss this in the overall framework of reforms in the financial sector and effective transmission of monetary policy. concluding remarks friends, i have flagged a few issues that are currently engaging our attention. i have also spelt out the thinking in the rbi on these issues. as i have already mentioned, i would urge the pds to deliberate on these issues and forward their view to the rbi. i wish the deliberations all success.