duvvuri subbarao : reserve bank of india archives – way forward comments by dr duvvuri subbarao, governor of the reserve bank of india, at the inauguration of the rbi archives museum : “ evolution of reserve bank of india – 1935 – 2010 ”, pune, 1 june 2010. * * * 1. i am delighted to be here today for the inauguration of the rbi archives museum. you will all recall that we have just concluded the platinum jubilee celebrations of the reserve bank. the events and initiatives that we had taken up as part of the celebrations centred around introspection on the evolution of the reserve bank, reflection on its current and future challenges, and on how the reserve bank can fulfill its objectives even better so that it continues to make a positive difference in the life of every indian. the theme of the museum that we are inaugurating today, “ evolution of the reserve bank – 1935 – 2010 ” is part of that continuing process of our quest to look ahead by looking back. 2. i visited rbi archives when i was here at the cab in june last year. it was a brief visit ; even in that brief visit, i could sense the richness, in terms of historical value, of the material preserved here. i am glad to have an opportunity today to spend more time here and see valuable documents, photographs, artifacts and currency displayed in these archives. i am also happy to note that the archives museum has been recently renovated to accommodate a larger, better and more user friendly display of records. 3. the word “ archive ” traces its origin from the greek word “ arkheion ”, which refers to the home or dwelling of the “ archon ” or the ruler, in which important official state documents are filed and interpreted under the archon ’ s authority. the documents and other material preserved in these archives are similarly valuable for the rich historical content they embody. as they say, the hierarchy of transition is from data to information to knowledge to wisdom. archives such as these aid that hierarchical transition. these archives of the reserve bank are not just an internal store of information for the bank ’ s staff ; they are a record of the events and times that should be of great historical significance. 4. haunted as we often are by an essential dilemma that nobel laureate saul bellow had once posed, “ can we ever forget about remembering? ”, for many of us archives also allow the pursuit of our “ incurable thirst for the

ecosystem not only would encompass banks and the technology in use but would also have as critical stakeholders non - bank technology solution providers and system operators. an example which readily comes into my mind is the need and relevance of crystallising such a strategic partnership amongst banks, mobile payments service providers and mobile network operators ( mnos ). this is very much required as rbi as well as government of india have consciously adopted a bank - led model for mobile payments as opposed to a mno - led model for achieving the financial inclusion objectives. as you are all aware financial inclusion in india consists of four set objectives which include ( i ) savings cum overdraft account ; ( ii ) a remittance product for electronic benefit transfer and other remittances ; ( iii ) a pure savings product ideally a recurring or variable recurring deposit and ( iv ) entrepreneurial credit such as general credit card ( gcc ), kisan credit card ( kcc ). moreover with the banks providing these products under the financial inclusion umbrella, it is but necessary that they also ensure compliance with kyc / aml norms, create adequate risk management framework and ensure prompt settlement of funds. given this comprehensive focus it is therefore necessary that mnos actively collaborate with the banks to achieve objectives for financial inclusion. therefore, this facet of a strategic and collaborative partnership framework needs to be recognised and given due impetus as it would provide the basic banking services to the “ aam aadmi ”. not only do i draw a reference to mnos here, but i also refer to the role of payment aggregators and payment gateways. these entities are essential specialised technology providers who have come to occupy a niche area in the payment industry. banks find it convenient to make use of the services of these entities to help them in their payment processing activities. while these entities play a significant role, it should be taken into account by the banking industry that proper service level agreements need to be put in place for minimising and mitigating risk including the safety of customer funds. i would draw your attention in this connection to the contents of the “ guidelines on managing risks and code of conduct in outsourcing of financial services by banks ” issued by reserve bank of india “ the next billions : unleashing business potential in untapped markets ” prepared in collaboration with the boston consulting group, world economic forum, january 2009. bis central bankers ’ speeches and the measures listed therein for managing and mitigating risks associated with outsour