to be made aware of the unique risks associated with these products. 25. the recent reform measures have facilitated greater linkages of the domestic market with the global markets. as the footprints of banks in india increase in the offshore markets, it is expected that price discovery of rupee products will also consolidate in the onshore market. to realise this potential, banks need to put in place adequate supporting infrastructure backed by expertise in risk management. more so, because integrated financial markets can also facilitate faster propagation of shocks which require appropriate risk management processes. conclusion 26. let me now conclude by stating that market development ultimately is a shared goal of both the regulator and the market participants. the rbi has taken steps towards liberalising markets, removing barriers and putting in place a facilitative regulatory framework. adoption of new products requires participation from market participants in terms of providing liquidity, contributing to price determination and easing operational constraints. it is upon the market participants to take the baton forward to develop the market and offer innovative financial products to a broader set of clients. the rbi will remain constantly engaged with the market bodies and participants. together, we should remain future ready at all times. i firmly believe that we can do this. i wish fimmda all success in its future endeavours and look forward to our continued partnership. thank you.

by banks to classify themselves into a cluster based on its technology and process dimensions. accordingly, banks have been advised to conduct a self - assessment and furnish the estimated timelines for the project. report on information security, electronic banking, technology risk management and tackling cyber fraud 18. rbi has recently released a report on information security, electronic banking, technology risk management and tackling cyber fraud. the group that has prepared the report has delved into various issues arising out of the use of information technology in banks and made its recommendations. the detailed recommendations are comprehensive and if adopted by the banks, they would go a long way in minimizing the risks that the banks are more often than exposed to. i would like to speak upon some of the issues highlighted in the report which have a major bearing on the functioning of banks : it governance 19. bankers need to feel confident that investments in it are likely to realise value in the enterprise. they should consider these questions regarding their it : are we doing the right things? are we doing them the right way? are we getting them done well? are we getting the benefits? gaining this understanding will enable them to unlock and maximise value from these investments and enhance their business operations. in this regard, idrbt has already prepared a model it governance framework which can be emulated by banks for their benefit. this model framework derives inputs from the business goals. these inputs are put bis central bankers ’ speeches through a four dimensional inter - linked view of it as a function – strategize, build, operate and assure ( sboa ) – aimed at delivery of the desired results in terms of the pre - defined performance indicators which can be tweaked further depending on the evolving expectations of the bank ’ s business. the model suggests the sboa cycle for the it function be brought under effective it governance through appropriate linkages and interdependencies. it is for banks to derive benefit from the pioneering work done by idrbt in this regard. information security 20. as the use of critical it systems becomes widespread within banks, the growing connectivity between these information systems, the internet and other infrastructure, create opportunities for increasingly sophisticated attacks on such systems. it is therefore essential to ensure that any disruptions of critical information systems are contained and managed effectively to minimize their impact. the security team for important projects must be best in class, and the security solutions must always be cutting edge at all times. security is widely regarded as a hygiene