a payment infrastructure development fund ( pidf ) to expand the reach of digital payments infrastructure into less penetrated regions is aimed at making payments more inclusive. the emphasis of the reserve bank is on operationalising all our payment systems round the clock, 365 days a year and i am happy to say that with 24x7 neft and rtgs systems, we are among a few countries that provide the facility to transfer any amount at any point of time. 17. the success of upi in india has attracted immense admiration from the international community and several countries across the globe have expressed interest in developing a system on similar lines which could provide a basis for stronger bilateral business operations and economic partnerships. the upi system also has the potential to unfold into a cheaper and faster alternative to available means for multilateral cross - border payments as well. it would be appropriate to mention that our rtgs also has multi - currency capabilities and with 24x7 operations now, there is a scope to explore whether its foot - prints could be expanded beyond india. with the reserve bank at the forefront of nurturing innovation, the day is not far, when we will experience cheaper, faster and safer cross border remittances. also, the indigenous rupay card network has shown astounding growth across strata and has a significant market share. with rupay having international presence, our home - grown card network could make a mark in the global financial landscape, going forward. 18. the reserve bank is intensively involved in developing an ecosystem, which would not only nurture the future technologies, but also stimulate the technological aspirations of the financial community. on these lines, to enable the growth of fintech in india, the reserve bank in august 2019 entered into the elite class of select few countries which have their very own regulatory sandbox ecosystem, where any regulated or unregulated entity can come and live test their innovative products or services in a controlled environment. this is a collaboration between the regulator, the innovators, the financial service providers and the end users ( customers ) which would ensure that indian consumers continue to receive the best in class financial services. the responses to the 1st cohort on “ retail payments ” and the 2nd cohort on “ cross border payments ” were encouraging. additionally, the reserve bank has also created our own innovation hub ( rbih ). this hub will collaborate with financial sector institutions, technology industry and academic institutions for exchange of ideas and development of prototypes related to financial innovations.

probabilities attached to different states of nature to a world of total uncertainty. such regime changes are " tipping points " for the system as a whole, whose behavior is suddenly transformed. when they occur, agents respond by making decisions using “ worst - case ” scenarios and covering themselves against the possibility of their own demise. doing so, they faced and created a collective action problem since the general rush for protection only aggravates the stress. this is the best way to rationalize and understand the liquidity and market freezes which occurred in august 2007 and, again, in september 2008. facing such unprecedented reactions, policy makers may have wondered, " does the market know something that we don't ". actually, markets participants knew that they could not know. because they were directly involved, they were aware it was impossible for them to fully master the complexity they had themselves created. and they acted accordingly. overall, complexity may have resulted in more fragility, an evolution already foretold by minsky who saw structural changes in financial systems over time as an essential cause of their vulnerability complexity has deep implications for public policy and the future of financial regulation. • first, about transparency. improving transparency is the first item on the g20 international agenda, for financial regulation reform. transparency is normally considered as a prerequisite to the existence of efficient financial markets. more recently, full transparency on aggregate positions and exposures by main financial intermediaries tends to be seen by financial supervisors as necessary to assess potential systemic risk. however, when the system is constantly morphing into new structures, and permanently changing networks, a comprehensive, but static vision may prove inadequate, because it will not eliminate the uncertainty stemming from the potential discontinuities embedded in market dynamics. what is needed, at least, is an overall understanding of the complex dynamics at work, which may be better reached through a permanent reexamination of their structure and constantly testing against very adverse circumstances. • second, robustness. a natural reaction to financial fragility is to strengthen the ability of financial institutions to withstand shocks by increasing their capital and liquidity requirements. while necessary, it is doubtful whether this " buffer " approach will help when uncertainty settles in. then, the net demand for both liquidity and capital becomes infinite, because gross demand is unknown and hoarding creates little or no supply. in sum, in times of stress, " enough " capital or liquidity is never enough. even explicit contra