development has been another concern. the rbi ’ s role has included setting up new institutions, encouraging the use of technology, developing markets, and expanding financial inclusion. in the coming year, we will have many new players in the banking eco - system, such as payments banks, small finance banks and possibly a postal bank competing with existing universal banks, regional rural banks, cooperative banks, and a variety of non - bank finance companies. the use of technology has also expanded from the days when accounts were maintained manually in ledgers and unions called for strikes at the very mention of the word computers. today, some banks allow customers to do all their banking transactions on a mobile phone, without entering a branch or touching a pen. the reserve bank ’ s intent is to create an ownership neutral, institution neutral, technology agnostic level competitive arena. for example, technologies enabling touch - and - go payments will find use even as banks focus on acquiring and analysing information and reducing transactions costs as they compete to extend financial services to all. the rbi ’ s state - of - the - art payments system will support technology, even as the rbi strengthens its cyber - supervision and cyber - security. we also need deep markets to absorb risks that stay too often in banks or in corporations. here too our track record has been strong. though many developing country governments bis central bankers ’ speeches are forced to borrow only in foreign currency, the reserve bank has fostered a liquid rupee government bond market, where the government today is able to contemplate issuing 40 year bonds. the rupee is truly becoming international as foreign institutions queue up to issue rupee denominated bonds. new products supported by the rbi, such as the recently introduced interest rate futures contract, are doing a roaring business on exchanges. our tasks are far from over. the nation has enormous financing needs in infrastructure, and far too many of our banks already have too much exposure. big corporate infrastructure players have also taken too much debt. the required national push to finance infrastructure should not override financial stability, which is key to national security. going forward, we need to develop new sources of risk capital so that our infrastructure needs can be financed with moderate amount of debt, even as we help the system deleverage. perhaps the country ’ s most important financial challenge, which is the theme of the conference today, is to bring financial services to every doorstep and to every small enterprise. the poor are still too far away from, or too

shyamala gopinath : securitisation markets in india – a post - crisis perspective inaugural address by ms shyamala gopinath, deputy governor of the bank of india, at the india securitisation summit 2010 hosted by the national institute of securities markets ( nism ), mumbai, 10 august 2010. * * * 1. it is my pleasure to be delivering the inaugural address at this securitisation summit. i am thankful to the nsim, particularly mr. sethu whose persistent efforts brought me here today. the development of a robust securitisation market in india, along with a broader corporate bond market, though universally acknowledged as a desired objective is proving a challenge in reality. in my address today i wish to touch upon some of the issues engaging the policy deliberations, particularly in the post - crisis context. 2. it has become customary these days for any speech on financial sector to start from the vantage point of the crisis – it is such an inflexion point. howsoever hard one tries, it becomes well nigh impossible to disassociate from the immediacy of the crisis, particularly when talking about a market so intricately linked to the crisis – securitisation. 3. securitisation generically refers to the pooling of cash - flow - producing assets ( e. g., mortgages, loans, bonds ) and subsequent issuance of securities in the capital markets backed by these collateral pools. this broad definition encompasses simple non - tranched structures, including covered bonds and pass through structures as well as tranched waterfall structures. the latter is a recent phenomenon and it is this version which accentuated the crisis. 4. structural benefits from securitization arise from the flexibility they provide in transforming cash flows and risks of the collateral pool into those of the securities issued on the pool. the traditional vanilla securitisation models have played an important role in strengthening the lending culture by providing the lenders with an avenue to free up the balance sheets in a cost - effective manner. securitization can also improve balance sheet liquidity by converting long - term and illiquid receivables into funds that can be used for additional value - generating investments. furthermore, securitisation enables end investors to obtain a more efficient market portfolio and thereby diversify their idiosyncratic risks. 5. however, the growing complexity over the years dissociated sec