to be shared raises both intellectual and practical challenges. the intellectual challenge is to build a better understanding of the forces driving capital flows, what type of policy instruments, including capital controls, work and in what situations. the practical challenge is the need to reach a shared understanding on an organizing framework for cross border spillovers of domestic policies in capital - originating countries, and the gamut of policy responses by capital receiving countries. 9. managing capital flows involves two important things. first, we need to make a judgment on how important the externalities are. and, second, we need to make an objective assessment of what combinations of policies may be used to minimize their impact. now that it is broadly accepted that there could be circumstances in which controls can be a legitimate component of the policy response to surges in capital flows, policymakers must have the flexibility, and discretion, to adopt macroeconomic, prudential and capital account management policies. importantly, they should be able to do so without a sense of stigma attached to particular instruments. framework for the adjustment process 10. let me now move on to the third issue which is the framework for the adjustment process to secure and preserve global financial stability. the adjustment process should ensure that individual actions of countries add up to a coherent path forward. i want to emphasise two aspects of this. first, the imf ’ s surveillance function is critical – it assumes a vital, pre - emptive role in preserving global and national stability. the forthcoming triennial surveillance review provides an opportunity to take stock of the steps taken and to assess recent experience, including the adequacy of the legal framework for surveillance. second, reserve accumulation has to be viewed in the context of economic growth and development. the insurance that reserves provide against sudden stops and reversals of capital flows far outweigh the opportunity costs of holding reserves. the experience of the crisis has amply demonstrated this. what constitutes an adequate level of reserves is a country - specific question, involving a judgment based on practical experience. clearly, there can be no “ one - approach - fits all ” to such assessments. bis central bankers ’ speeches global reserve currency 11. my fourth point relates to a global reserve currency. the recent crisis has brought home the complex challenges arising from the world having a single reserve currency. in the ongoing search for solutions, one option is to have a menu of alternative reserve currencies which fulfill the required criteria – full convertibility ; the exchange rate determined by market fundamentals

the brand. i would therefore urge banks to have a proactive approach towards resolving customer grievance issues by identifying and addressing the root cause of these issues. customer complaints should only be rejected after careful examination by the internal ombudsman. to do this effectively, regulated entities must ensure that the internal ombudsman is adequately resourced. last year the rbi had issued guidelines on digital lending to address concerns relating to delivery of credit products and their servicing through the digital route. these guidelines inter - alia endeavoured to promote transparency by requiring a standardised key fact statement which should contain details of the annual percentage rate, the recovery mechanism, the grievance redressal officer designated specifically to deal with digital lending / fintech related matters and the look - up period. any fees or charges, including penal charges, which are not mentioned in the key fact statement cannot be charged by the regulated entity to the borrower at any stage during the tenor of the loan. however, we are still coming across instances of non - compliance with these guidelines, requiring us to take appropriate supervisory action including imposition of business restrictions, where warranted. i would therefore urge the industry to review and strengthen its compliance with all regulatory instructions on customer protection and grievance redress. role of regulation and supervision before i conclude, i would also like to reflect on the role of regulation and supervision, which are essential components of a resilient and stable financial environment. 4 / 5 bis - central bankers'speeches the regulatory framework lays down prudential standards and guidelines which are designed to mitigate various risks including credit, market, operational and liquidity risks. the rbi is endeavouring to make its regulations more principle based, activity oriented rather than entity oriented and proportionate to the scale of systemic risk. the recent initiatives on scale - based regulation for nbfcs, tiered approach for ucbs and harmonisation of regulations across regulated entities are examples of this regulatory stance. further, counter - cyclical macro - prudential measures are also used to address systemic issues such as the recent revision in risk weights for certain segments of consumer credit and bank credit to nbfcs. on the supervisory side, the initiatives taken are aimed at identifying risks and vulnerabilities early, putting in place a structured early supervisory intervention framework to mitigate the risks, increasing the focus on root cause of vulnerabilities, and harmonising the supervisory rigour across various segments of financial system. an endeavour has