adversely affect the supply of labour and its quality. a smaller labour force would act as a drag on potential output growth, and impact negatively on competitiveness by tightening labour market conditions, leading to upward pressures on wages and inflation. an older work force is also likely to be less mobile and flexible, albeit more experienced. policy measures to address the challenge in economic terms, population ageing is tantamount to a negative supply shock, of which the fiscal impact is but a manifestation. more fundamentally, the ageing phenomenon undermines the economy ’ s productive base and its competitiveness. the adverse effects of the reduction in output are meanwhile compounded by higher consumption, which tends to crowd out investment expenditure and exert adverse pressures on price levels and the external balance of payments. the desirable outcomes of policies intended to meet population ageing are, therefore, not hard to identify. such policies must aim at producing an increase in productive capacity and output, and stimulating saving and investment, thereby alleviating pressures on inflation, fiscal resources and the external account. indeed, these outcomes are desirable independently of population ageing, but are rendered even more urgent by the onset of the phenomenon. it is the way in which this strategy is to be implemented that is often subject to contention. opinions tend to diverge because it is not always appreciated that any course of action chosen, including a passive stance, involves sacrifices. an increase in resources devoted to pensions must imply higher taxation, a reduction in funds allocated to other equally worthy causes, or burdens on society as a whole in terms of higher inflation and interest rates. on the other hand, reforms that should engender a win - win situation in the long run could perhaps impose sacrifices on a number of individuals in the short term. it is, therefore, important to promote an informed debate which takes account of the costs and benefits involved in any course of action, with a view to reaching agreement on viable solutions. the nineties, in fact, saw many governments implementing pension reform initiatives, generally based on the three - pillar approach advocated by the world bank. under this approach, individuals may have up to three different sources of revenue during retirement, namely a basic state pension, the balance accumulated in a mandatory pension account and voluntary saving arrangements. a number of international studies show that the replacement of pay - as - you - go pension regimes by funded systems provides more incentives for private saving, and reduces the scope for tax evasion by linking contributions paid into the system directly

– 2011. although the reserve bank of india has systems and procedures for records management in place but a need for a proper archival policy has always been felt. recently, the committee of the central board of rbi has also emphasised the need for clear - cut archival policy of the bank. this policy would enumerate the sound records management practices followed in the bank in respect of creation and preservation of records, preservation schedule, maintenance of records, weeding and appraisal of records and transfer of non - current permanent records to the rbia. this policy would, no doubt, try to streamline the records management systems in the bank. it has been our experience that in some of the central office departments and the regional offices, records management is not being accorded due priority resulting in non - transfer of permanent records the to rbia. the geometrical growth of records puts a limitation on space that can be provided for storing them and on funds that could be made available for their proper maintenance and on servicing personnel required for their care and processing. in view of this, rbia will now initiate action on appraisal or review of non - current records in the custody of the central office departments and regional offices in consultation with the creating agencies. we all are aware of the challenges posed by electronic records. the disappearance of physical entity of record is one of the most intriguing and fascinating aspects of digital era. the present generation of archivists and record managers have a challenging job to make these records available whenever required. rbia would shortly initiate steps for digitisation of records in its custody. at present vital records in electronic form are kept at various locations in decentralised form and it is felt that if appropriate steps are not taken in this direction these records would'fade away'from the memory of the bank. it is, therefore, essential that guidelines in this regard are formulated and scrupulously implemented. i am happy to inform you that during the silver jubilee year a number of initiatives are being taken by rbia to enhance its image and utility. a currency display unit would be added in the rbia. the currency display and archival exhibition would be open to visitors so as to make people aware of the role of rbi in country's economy and monetary policy. last but not the least, rbia would make a disaster preparedness and reaction plan. emphasis should be placed on the need for fast and efficient reaction to even small incident as they have potential to grow into something bigger if not contained