deepak mohanty : economic and financial developments in goa speech by mr deepak mohanty, executive director of the reserve bank of india, at the goa chamber of commerce and industry, goa, 31 october 2011. * * * the assistance provided by dr. p. k. nayak and shri suraj. s is acknowledged. i thank the goa chamber of commerce and industry and shri mangarish pai raikar for inviting me to address this distinguished gathering. as currently goa is celebrating the golden jubilee year of its liberation, i thought that the occasion is appropriate to highlight the recent economic achievements of the state. the scenic state of goa is the 25th state in the union of states of india. it covers 0. 11 per cent of the total geographical area of the country and accounts for a similar share of 0. 12 per cent of national population. however, it has a much larger share of 0. 4 per cent of all - india net domestic product ( ndp ). this explains why goa is the richest state in india with a per capita income of almost three times that of the average for the country as a whole. it was ranked the best state by the eleventh finance commission for its infrastructure. it also ranked at the top for the best quality of life in india by the national commission on population. the india human development report 2011 ranked goa as fourth in terms of overall human development in the country. the lushness of its landscape, geographical and ecological diversity and cultural richness make goa a travelers ’ paradise. notwithstanding these achievements, goa faces several developmental challenges, including in the areas of banking and finance. it is important to have a well - functioning financial system for sustainable economic development. while the reserve bank has been actively engaged in the development of the financial sector, it has stepped up its efforts in recent years to enhance the penetration of the formal financial sector and promote financial inclusion with a view to improving the well - being of our society. in this regards, the reserve bank has been undertaking special initiatives for extending the outreach of banking facilities in the state. against this background, i propose to briefly outline the economic and financial structure of the state as well as highlight various financial inclusion initiatives taken by the reserve bank. in conclusion, i shall present some thoughts on policy challenges ahead. macroeconomic structure i propose to capture the macroeconomic trends in the decade of 2000s as the information on the net state domestic product ( nsdp ) is available up to 2009 – 10. the last decade was characterised by

original maturity up to one year, was comprehensively rationalised in april 2021, june 2021 and january 2024 respectively. the participant base was widened by extending access to the call, notice and term money markets to payment banks, small finance banks21 and regional rural banks ( rrbs ) 22. the rrbs were also permitted to issue cds23. to foster efficiency, call money market participants have been mandated to obtain membership of the nds - call platform24. banks have been provided the flexibility of setting their own limits for call and notice borrowings within the prudential limits for inter - bank liabilities25 and the option of buying back cds. the operational requirements for cps and ncds with original maturity up to one year have been eased, and compliance and disclosure requirements strengthened26. payments banks and small finance banks – access to call / notice / term money market dated october 29, 2018 regional rural banks - access to call / notice / term money market dated december 04, 2020 reserve bank of india ( certificate of deposit ) directions, 2021 dated june 4, 2021 reserve bank of india ( call, notice and term money markets ) directions, 2021 dated april 01, 2021 reserve bank of india ( call, notice and term money markets ) directions, 2021 - review dated june 08, 2023 reserve bank of india ( commercial paper and non - convertible debentures of original or initial maturity upto one year ) directions, 2024 dated january 03, 2024 development of otc derivative market 15. the regulatory framework for otc transactions in interest rate, fx and credit derivatives has transformed over the last few years27. the revised framework is based on the principles of easing access and operations, enabling flexibility and ensuring fair market conduct, customer protection, transparency and risk management, while eschewing detailed procedural prescriptions. 16. access to financial markets has been eased. non - residents can now access the domestic markets at par with residents. large participants ( non - retail users ) can access derivative markets to hedge their risks as also express views28. the market - maker base has been expanded by granting authorised person licences to standalone primary dealers. market - makers have been permitted to offer bespoke or custom - made products to enable efficiency and flexibility in hedging, subject to necessary risk management capabilities. retail customers can only be offered a set of simple products. new products such as interest rate options, swaptions and fx swaptions have been permitted. non - deliverable fx derivatives can