in urban infrastructure investment and improvement in urban governance and management. the successful financing of such an enhanced level of investment will depend crucially on the financial viability of such projects. given that the level of indian urbanisation is still less than 30 per cent, and that 60 per cent of the indian total population is still dependent on agriculture, the continuation of high economic growth will depend on the success of a higher rate of labour absorption by cities. this will need much higher growth in labour using manufacturing, higher levels of urban infrastructure investment, along with knowledge based forward looking city management. thus, the indian situation is quite different from that of china. if indian urbanisation does speed up as it surpasses the 30 per cent mark and as indian per capita income approaches us $ 1000, in normal circumstances we should expect acceleration in indian urban growth. this will need significant acceleration in urban infrastructure investment and hence in the mobilisation of financial resources for such investment. although so far india has not relied significantly on external savings for its investment needs, it is possible that the demand for urban infrastructure investment will necessitate greater usage of external savings during this phase of india's urban growth. the other large country in asia is indonesia, which is spread over a large number of islands. till the asian financial crisis in 1997, indonesia also exhibited economic policy characteristics similar to those of other east - asian countries in terms of openness and export orientation, although it had more of a mix in economic policy, which was also concerned with promotion of import substituting industries and conscious dispersal of economic activities beyond the natural concentration in java. nevertheless, the greater jakarta region, known as the jabotobek region, exhibited a high degree of urban concentration where a high proportion of indonesian economic activities got concentrated despite the large size and dispersed nature of the indonesian archipelago. given the somewhat lower level of indonesian per capita income and the very rapid growth of the jabotobek region, the extent and proliferation of slums has been high in the region. ( webster, 2004 ) furthermore, indonesia was perhaps the most highly affected of the asian countries from the 1997 east asian financial crisis. it has still to fully recover from that shock and is yet to regain earlier economic dynamism. thus the persistence of slums and the accompanying urban distress is likely to persist in indonesia longer than its other south east asian counterparts. the urban future of indonesia is more beset with uncertainties, reflecting the parallel economic uncertainties that it faces. how

conduct for fair treatment of customers is evolved and adhered to. with a view to achieving greater financial inclusion, since november 2005, all banks need to make available a basic banking “ no frills ” account either with “ nil ” or very low minimum balances as well as charges that would make such accounts accessible to vast sections of population. banks were urged to review their existing practices to align them with the objective of “ financial inclusion ”. there is a scheme of ombudsman, located in fifteen cities to provide redressal to grievances of the bank customers. customer - service is accorded high priority in the supervisory evaluation and according regulatory comfort to the reserve bank. with a view to strengthening the supervisory framework within the rbi, a board for financial supervision ( bfs ) was constituted in 1994, comprising select members of the reserve bank ’ s central board with a variety of professional expertise to exercise “ undivided attention to supervision ” and ensure an integrated approach to supervision of commercial banks and financial institutions. the reserve bank has also instituted off - site monitoring and surveillance system for banks in 1995, which provides for early warning system as also a trigger for on - site inspections of vulnerable institutions. development of financial markets financial markets in india in the period before the early 1990s were marked by administered interest rates, quantitative ceilings, statutory pre - emotions, captive market for government securities, excessive reliance on central bank financing, pegged exchange rate, and current and capital account restrictions. as a result of various reforms, the financial markets have now transited to a regime characterised by market - determined interest and exchange rates, price - based instruments of monetary policy, current account convertibility, phased capital account liberalisation and auction - based system in the government securities market. a noteworthy feature is that the government securities and corporate debt market are essentially domestically driven since fii and non - resident participation in these markets are limited and subjected to prudential ceilings. the reserve bank has taken a proactive role in the development of financial markets. development of these markets has been done in a calibrated, sequenced and careful manner such that these developments are in step with those in other markets in the real sector. the sequencing has also been informed by the need to develop market infrastructure, technology and capabilities of market participants and financial institutions in a consistent manner. the reserve bank has accorded priority to the development of the money market as it is the key link in the transmission mechanism of monetary policy to financial markets