good culture. but we can have a lot of influence here. in the last few months we have taken a very important step here by introducing for banks the senior managers and certification regime, as proposed by the parliamentary commission on banking standards. it replaces the approved persons regime, and in time it will be implemented across the regulated financial services sector. there is, let me be clear, no magic bullet to change culture, but the new regime is a big step forward in my view. this is because at its heart it embeds the notion of personal responsibility for the affairs of the firm at the level of senior management. the approved persons regime did not do this, and in practice it focused on a notion of culpability not responsibility. these two notions are different. i have said many times, but will keep doing so, that senior managers cannot delegate responsibility. to be fair, many have said to me over the last few years that this change does not make a difference for them as they always thought they were responsible. good. but, set this against other conversations i have had which have doubted the enforceability of this notion of responsibility. this has concerned, but not distracted me. so, to be clear, responsibility is the central plank of the new senior managers regime. we do want senior managers to feel this responsibility in all that they do and that includes a responsibility for forming and implementing a positive culture throughout the organisation. in this respect culture is no different to strategy ; where are we today, where do we aspire to be tomorrow, how will we get there and what risks must we mitigate along the way. responsibility, as embedded in the senior managers regime, is therefore an important hook to assist in firms ’ shaping their own culture, and also to provide regulators with the powers to conduct supervisory oversight and to act when needed. but, let me reiterate that it is not the job of regulators to enforce culture and to change culture. if we have to step in, and occasionally we do, the overriding conclusion is that management has failed. the common theme there is that the incentives facing a firm will determine its culture and will determine its success in terms of outcomes. one of the most important elements of the regulatory changes since the crisis is that we have adopted an approach of seeking to align those incentives with our public interest objectives as well as the private interest of the firm. you can also see this in our approach to the too big or too difficult to fail problem where the

shaktikanta das : launch of reserve bank of india ( rbi ) - retail direct scheme and rbi ombudsman scheme welcome address by mr shaktikanta das, governor of the reserve bank of india, at the launch of reserve bank of india ( rbi ) - retail direct scheme and rbi ombudsman scheme by the hon ’ ble prime minister, 12 november 2021. * * * a very warm good morning and namaskar. 1. on behalf of the central board of the reserve bank of india, i have the privilege of welcoming the hon ’ ble prime minister to this event to launch two major initiatives of the reserve bank. sir, your participation in this event is a source of great motivation for all of us in the rbi. i would also like to welcome the hon ’ ble finance minister to this event and thank her for her continuing support. we are also honoured by the esteemed presence of hon ’ ble ministers from the central and state governments, other financial sector regulators, senior govt. officials, md & ceos of banks and various regulated entities of rbi and several other dignitaries. a warm welcome to all the viewers from across the country. 2. the reserve bank, with its multifarious role touches the lives of the people in varied ways, be it through the currency system, the banking system, the financial markets or the 24x7 seamless digital payments. the reserve bank has been leveraging technology and innovation for enhancing the efficiency of its services. the recent announcement of a global hackathon contest, “ harbinger 2021 – innovation for transformation ” with the theme ‘ smarter digital payments ’ on november 9, 2021, is another such initiative by the reserve bank to promote innovation. 3. the rbi ’ s developmental role is focussed on further deepening of financial inclusion and undertaking people - centric initiatives. the two schemes being launched today by the hon ’ ble prime minister are steps in this direction. 4. the first scheme, namely the retail direct scheme seeks to widen the investor base for government securities by creating an ecosystem whereby retail investors can easily participate in the government securities market which is so far dominated by institutional investors. by doing so, india is setting an example in democratisation of the government securities market. 5. the other scheme being launched today by the hon ’ ble prime minister i. e. theintegrated ombudsman scheme focuses on strengthening the grievance redress mechanism for consumers of