and services, the lowering of returns in the commodity / service producing sectors could have diverted the search for yields to the financial sector. this has called into question the pre - crisis consensus on the best practice in monetary policy framework as the one characterised by “ a single target ” ( i. e., price stability ) and “ a single instrument ” ( i. e., short - term policy interest rate ). the financial stability mandate and governance arrangements for central banks must be compatible with their monetary policy responsibilities. fourth, as it is being widely recognised that analysis through a micro - prudential lens makes policymakers prone to ignoring the implications for systemic stability of financial market imperfections, including those stemming from information frictions, moral hazard implicit in too - big - to - fail firms outside regulatory purview and the negative externalities when firms too - interconnected - to - fail failed. while supplementing micro - prudential approach by a macro - prudential approach, the role of the central bank regard need to be designed taking into account the synergies and conflicts in the assignment of functions to various policy agencies. fifth, the financial regulatory reforms spearheaded at the international level by the g20 aims at increasing the resilience of the global financial system. in the process, the international best practice trajectory itself has shifted upwards with the introduction of basel iii and other reforms. nevertheless, when it comes to country specific implementation in an internationally consistent manner, there are several practical challenges. any substantial adjustments in the financial sector in tandem with the international prescriptions in some saarc economies might have implications for steady state growth in individual economies as well trade and financial cooperation within the region. further, many countries are still recovering from the crisis and any new impositions may disrupt this. moreover, unlike developed economies, the saarc economies also need to factor in the inter - linkages between growth and socio - economic outcomes. even a small decline in growth may have magnitudinally wider repercussions as growth is critically linked with inter - regional equity and poverty. hence the region needs to calibrate the time and magnitude of adjusting to the global new normal. sixth, for saarc countries, because they are at different stages of development there may be some other features of the financial sector which pose challenges to the stability of the system which are not there in advanced economies. for example, it is important to ensure that the crucial goals of financial literacy and financial inclusion

the system. for keynote address by shri b. p. kanungo, deputy governor, reserve bank of india, at the npci national payments excellence awards function, mumbai, on may 29, 2018. inputs received from the department of payment & settlement systems are acknowledged. example, dilution of kyc, aml framework can seriously undermine public confidence in the system itself and must be eschewed. 18. the spirit to leverage technological innovation to safely and securely bridge the gap in payment systems should continue to be our watchword. if today ’ s awards of excellence is any indication, i am optimistic that the future is bright. let us not be a part of the future – let us create the future and make it successful. 19. my congratulations to the winners of award today. the award should goad them to further excellence and inspire others to create a payment system that is safe, secure, efficient, convenient and best in the world. i wish npci will play a stellar role in achieving this. thank you. keynote address by shri b. p. kanungo, deputy governor, reserve bank of india, at the npci national payments excellence awards function, mumbai, on may 29, 2018. inputs received from the department of payment & settlement systems are acknowledged.