provide a large and growing source of deposits for banks. banks that are ahead of the curve in establishing a presence in the vast hinterland of the country will have a first mover advantage in exploiting this potentially huge opportunity. second, there is the opportunity of capturing remittances. although there are no firm figures, i have been told that thousands of crores of rupees of remittances take place across the country today, predominantly from migrant labour, and over ninety per cent of this happens through non - formal channels. if banks can capture even half of this into their fold, they will not only reduce costs for the labour making remittances but they will also have the advantage of an enormous, permanent float. 33. third, ebt, the electronic benefit transfer, is another big opportunity. i believe banks are inhibited about pushing this forward because of the fear of the unknown : they are not certain that the business can be cost - effective. banks are clearly underestimating the potential. if indeed, all or even most government payments to rural people are captured through the ebt mode, this again can give banks a large float and make it an attractive business proposition. so far there has been a sharing of the costs between banks and state governments with regard to ebt. as ebt mode expands and becomes universal, banks will find that this is a viable business model even without any service charges. 34. it is also relevant here to acknowledge the potential of the unique identification number ( uid ) that nandan nilekani and his team are working on. the uid will be a powerful instrumentality for helping poor people establish their identity to meet the banks ’ kyc norms. i believe, this is going to reduce cash and non - cash transaction costs both to the banks and to the potential customers. the uid is another powerful illustration of harnessing technology to the benefit of the poor. 163 / 2009 35. the reserve bank has made a commitment to bank - led model of financial inclusion and will support banks in their financial inclusion initiatives by way of information dissemination, sharing of best practices and also through regulatory incentives. however, i want to add that our commitment to a bank led model is not irrevocable. there are other models of financial inclusion that are being experimented elsewhere in the world. should banks fail to come forward and exploit this opportunity of financial inclusion, the reserve bank will not hesitate to explore other models of furthering financial inclusion

constantinos herodotou : speech - 14th limassol economic forum speech by mr constantinos herodotou, governor of the central bank of cyprus, at the 14th limassol economic forum, limassol, 6 october 2023. * * * honourable president of the house of representatives, fellow speakers, esteemed guests, ladies and gentlemen. i would like to thank the organisers for inviting me to the fourteenth limassol economic forum, a prestigious and always successful event. i was asked to discuss today the economic outlook of one of the world's most significant economic regions, the euro area. amidst the continuous waves of shocks and high uncertainty, the euro area remains a cornerstone of the global economy, exemplifying both the challenges and opportunities of integrated economies. over the years, the euro area has weathered numerous storms. from the impact of the great financial and sovereign debt crises, to the unprecedented shocks of the global pandemic, followed by the on - going consequences of the war in ukraine, the euro area has encountered multifaceted challenges. nevertheless, based on the combined strength and collective decision making of its member states, the euro area has shown resilience, ensuring that financial stability is preserved and economic recovery is steady and sustainable. having said that, the euro area is exhibiting a slow down in economic growth in 2023. the euro area economy grew by 0. 1 % on a quarter to quarter basis during the first half of 2023, and recent data suggests a similar performance for the third quarter. decreased residential and business investments, as a result of tighter financing conditions, coupled with a reduced demand for exports from the euro area, are hindering economic growth. according to the purchasing managers'index - the pmi, which is the index that summarises whether market conditions are expanding, staying the same or contracting, as viewed by purchasing managers surveyed monthly, the prevailing direction of economic trends in the manufacturing sector is contracting. according also to pmi data, the services sector had been growing until july 2023, albeit at a decelerated rate, but has since then moved also into contractionary territory. based on the european central bank ( ecb ) september 2023 projections, which are the most recent projections available, the economic activity is expected to regain momentum at the beginning of 2024. this will be fuelled by projected increases in real income due to decreasing inflation, growing wages, a robust european labour market and recovering foreign demand. according to