in terms of implementing the said - agenda. fourthly i will touch upon certain issues which are specific to chhattisgarh before concluding my speech. regulatory reforms – a global endeavour the magnitude of this crisis has clearly signaled the need for major overhaul of the global financial regulatory architecture. the g - 20 leaders have mandated the international regulatory agencies and standard - setters, including basel committee on banking supervision ( bcbs ), financial stability board ( fsb ), committee for payment and settlement systems ( cpss ) and international accounting standards board ( iasb ) to take active part in this process. the washington summit of g - 20 in november 2008 was the first global initiative in this regard. subsequently, various committees were set up to make relevant recommendations. amongst the most influential reports on the subject are : bis central bankers ’ speeches i. report of the high level group on financial supervision in the european union ( chairman : jacques de larosiere ) ii. the structure of financial supervision : approaches and challenges in a global market place ( group of thirty – chairman : paul volcker ) iii. the fundamental principles of financial regulation ( the geneva report ) iv. the turner review : a regulatory response to the global banking crisis ( financial services authority of the uk ) v. the report of working group i of the g - 20 on “ enhancing sound regulation and strengthening transparency ( g - 20 ) ” ; and finally vi. principles for financial market infrastructures ( cpss and iosco ) responding to the unfolding situation, international regulatory agencies are working on strengthening the resilience of financial system, especially on bridging the gaps in the regulatory framework revealed by the current crisis. the broad contours of the international initiatives on regulatory reforms envisage strengthening the quality of capital, introducing minimum liquidity standards and leverage ratio, countercyclical measures in the form of capital buffers and forward looking provisioning, developing a framework for systemically important entities including cross - border resolution arrangements, extending the regulatory perimeter to unregulated pools of money, de - risking the otc derivatives trading through central counterparties and new framework for regulating employee compensation within the financial sector. this crisis has underscored the importance of effective contingency planning and open cross - border dialogue between authorities. lack of information can quickly lead to uncoordinated measures to the detriment of all. under the aegis of the fsb, central banks, supervisors and governments are maintaining close dialogue and co -

go miles and there is no room for complacence. opening at least one bank account in each family and providing banking services through business correspondent are the initial steps, we need to make sure that people develop a habit of banking. their credit, remittance and insurance related needs are met and financial products delivered at their doorstep. financial literacy and awareness plays a vital role in holistic financial inclusion. bankers and government agencies need to incorporate financial literacy as a part of their action plans at all levels. rbi has been organizing outreach and similar programmes but they are just to show the way, it is for the banking industry to take it further to each and every village. a proper schedule for such programmes may be prepared and rbi would extend all possible assistance to such initiatives by banks. financial literacy and credit counseling centers are being set up at district levels, the functioning of these flccs should be monitored closely by controlling heads of banks and necessary guidance should be provided. flccs should not function only at their office but they need to step out at rural markets, gram sabhas and schools to educate people about financial products. looking at the banking statistics for the past five years it is observed that there is a gradual reduction in cd ratio. for a state featuring among the top in economic growth it is not comforting to note that the cd ratio is declining. it might be because of investments being made in the state resulting in greater growth of deposits. it has been mentioned that few large projects operating in the state have credit limits sanctioned from other states hence they cannot be included in advances for chhattisgarh. bankers need to address this issue, with cbs any customer can access his account from any branch, and this can be utilized by bankers in chhattisgarh to sanction big ticket advances. banks should have an area specific action plan for growth in advances keeping in view the huge potential available in the state. the state government has signed mous with some major industries and they are likely to setup their project here, this opportunity should be grabbed by banks to boost up their advances. business correspondents can also play a major part in increasing credit ; banks can extend overdraft facility to mgnrega workers. keeping in view the huge number of such beneficiaries the resultant credit growth will be substantial. bis central bankers ’ speeches concluding observations in view of the fact that regulatory failures are among the causes for the recent global financial crisis, globally, an endeavour has been underway to adopt regulatory reform agenda