priority sector. resultantly, the priority sector vertical is reduced to a data collection and statement generating vertical. further, i am also not sure how many bank boards discuss priority sector strategy in the board meetings. 6. it is necessary that all these verticals evolve within themselves and come together as a cohesive group, prepare a strategy and then take it to the board for broader discussion and guidance. the priority sector activity should not remain confined to being a mere data collection exercise. is there a linkage between plan approved by slbc and plan of the priority sector vertical? 7. there are several agencies involved with priority sector activities of banks. there is the slbc structure wherein district credit plan ( dcp ) is prepared and the lead bank offices operate at district level. nabard prepares the potential linked credit plan ( plp ), slbc adopts it and then it is distributed amongst all banks. i have a suspicion that between the overall priority sector strategy and what happens at the slbc and dcp level, there may not necessarily be any logical linkage. in rbi we are looking at revamping the entire structure of slbc and as such, some of these will undergo a change. data extraction and its implications for priority sector 8. currently we have a project underway within rbi which would enable extraction of data directly from banks ’ core banking systems ( cbs ). in the entire credit planning exercise data infirmity has been a major factor and in some sense, has become an impediment for banks in arriving at right conclusion and right strategies. this project is at a fairly advanced stage now. however once this is implemented, it should not once again be seen as a data cleaning and compliance exercise. this is a great opportunity for banks because they can use the data, apply analytics and prepare the right sort of strategy. they can decide on their focus area and product once this robust set of data is available. it is important that the senior - level functionaries appreciate this exercise in that sense. research 9. the last point that i would like to make on the broader policy and strategy aspect is that time has come for individual banks to also invest in research - not very intense academic researchbut research to the extent that is helpful in making policies and business strategies relevant for their own purpose. 2 / 7 bis central bankers'speeches 10. let me now come to some recent changes and emerging opportunities in the priority sector. diversified universe 11. in the last revision the scope of

tool to lvrs that will enable us to more efficiently target financial stability risks. we've continued the mahi around implementing the new deposit takers act, which will transform our approach to the regulation of banks and other deposit takers, while helping to ensure the safety and soundness of deposit takers. the act introduces a new depositor compensation scheme ( dcs ) so depositors can have confidence that their deposits, in the event of a deposit taker failure, are eligible for compensation up to $ 100, 000 per depositor, per institution. a substantial work programme is underway to implement the new prudential framework for deposit takers. parts of the current banking ( prudential supervision ) act 1989 relating to the regulation and supervision of registered banks and the non - bank deposit takers act 2013 will remain in force until the remaining parts of the dta have been fully implemented. we've also continued our collaboration and engagement with industry around improving mori access to capital. we are working collaboratively with retail banks to help them understand the flexibility of the regulator regime, and it's been heartening to see some banks delivering innovative ways to support mori to build homes on their whenua / land. we look forward to our continued engagement with finance and expenditure committee and we welcome your questions. 2 / 2 bis - central bankers'speeches