efficacy of the payment card industry data security standard ( pci dss ) is a proprietary information security standard for organizations that handle cardholder information for the major debit, credit, prepaid cards etc. bis central bankers ’ speeches such a retail payment system for the country. the impact of innovations on cash and monetary policy may be required to be analyzed in the long run once the volumes pick up. retail payment systems – kyc constraint although we always propagate that availability and accessibility of a payment product / process is the key factor to be considered for financial inclusion the fact remains that these customers have to pass the test of proving identity. innovating a retail payment system keeping the biometric identity in mind is the need of the hour. but that calls for nationwide initiative. in india, however, integrating the aadhaar ( biometric ) with payment systems has started happening with the regulator supporting its acceptance as a valid kyc proof. concluding thoughts i hope all of you have had two days of fruitful discussions and debate. i also hope you had a pleasant stay in india. i know the best is yet to come when you will be taken to the country ’ s historically most important infrastructure, the taj mahal, tomorrow. wish you have a great time exploring india and that you will all return academically and culturally richer back to your respective countries. wish you all the best. bis central bankers ’ speeches

fully implemented would ensure that fmis perform the role they have been designed for viz. shock absorber and plumber of financial systems rather than being the major channel for transmission of financial shocks in form of liquidity dislocations and credit losses. given this background, we thought pfmi would be an apt theme for the conference. i am certain the esteemed speakers who have been closely associated with the framing of new standards would have demystified the principles and explained the nuances and subtleties of the principles. you would have noticed that the new standards seek to introduce more demanding requirements. the new standards have raised the bar in form of financial resources and risk management frameworks. the significant being the need for cover 2 requirements both for liquidity and credit risks for systemically important ccps which are operating in multiple jurisdictions / currencies and which deal in asset classes with “ jump to default ” risk profile in recognition of the increased risk posed by such ccps. the standards also bring forth other important requirements, such as, need for addressing the business risk, need for a recovery and resolution plan, fair and open access, portability and segregation which are all critical. the new standards when compared to old standards provide additional guidance both to the regulators and the fmis. the standards provide building blocks for risk models, be it for margin calculation, collateral requirements, back - testing and stress testing methodology requirements or liquidity and financial resource planning. it must be recognized that the fmis differ significantly in terms of their organization, functionality and design. thus, principles have been framed with a functional focus so that they provide flexibility while applying them to the fmis in respective jurisdictions. the intended benefits of the standards could be achieved through effective implementation. the challenge lies in measuring the effectiveness. the assessment methodology provides guidance to the regulators for determining the scope of assessment, gathering facts, developing conclusions and assigning a rating of observance for each principle. the assessment methodology helps in promoting objectivity and comparability across the assessments of observance across fmis and across jurisdictions. i hope the sessions on the assessment methodology would have equipped the participants in undertaking effective assessment of principles in your jurisdictions. another aspect you might have observed would be that unlike the previous standards, the new standards have more enforceability as they are binding on the members of the cpss - iosco on account of their commitment to financial sector reforms. further, compliance to these standards also provides economic incentive in terms of capital benefits