in banking industry. the critical element for success here is manning of holding company, but government will be able to devote significant attention to a focussed task compared to several tasks of many institutions. ( c ) to ensure genuine corporate governance and protect a private shareholder, even if the government owns a majority, a government company should be one where 100 per cent ownership vests with government directly and not 51 per cent or above. ( d ) the provisions of central vigilance, cbi, etc., would be applicable to a public servant, but not to any person employed in an organization that is substantially competing with private sector organizations, procedures similar to private sector should apply. ( e ) cooperatives as a genuine peoples movement should be differentiated from a cooperative as a mere form of organization. cooperatives should also be distinguished between those who accept public deposits and those who do business with only members in a restricted area. in other words, a distinction should be made between a bank and a credit union. a bank should be covered under the banking regulation act, irrespective of whether it is registered under companies act or cooperatives act. the rest will have to be credit unions of some form or the other. ( f ) regional rural banks ( rrbs ) should be revamped so that ownership of centre and state is also made optional. they could be brought under companies act and flexible ownership promoted through national bank for agriculture and rural development ( nabard ). rrbs have the unique capabilities to enhance credit delivery in rural areas if the overhang problem is sorted out. ( g ) the development financial institutions ( dfis ) should be similarly corporatised where they are not and they should formally be brought under the regulatory framework of nbfcs as a distinct category. ( h ) above all, a national consensus must be attempted among all the stakeholders to seek a banking system that is flexible, dynamic, fair and truly national - where the owners, workers, depositors, borrowers and regulators commit themselves to a real paradigm shift in public policy. it is pragmatism and not ideological extremes that has made india strong in external sector and perhaps a similar approach will work in financial sector also. select actions under contemplation with rbi in this concluding section, i will mention a few actions under contemplation in rbi that would enable paradigm shift in banking. with respect to ownership of the rbi in banks and other refinancing institutions, the monetary and credit

is why utmost collaboration and cooperation are required. international organisations and institutions therefore need to play a key role in this area. fourth, the impact of the materialisation of the physical and transition risks of climate change may be very uneven across geographical areas and economic sectors. moreover, apart from this geographical and sectoral diversity, the impact is also likely to be very uneven across economic agents. given these special features, we banking regulators and supervisors have launched various initiatives to assist and oblige banks to take these risks properly into account. thus, the european banking authority ( eba ), 8 the european central bank ( ecb ) 9 and the banco de espana10 have each published supervisory guidelines and expectations explaining how banks are expected to consider these risks in their daily operations, their business strategies see, for example, a call for action. climate change as a source of financial risk, ngfs, april 2019, and climate - related risk drivers and their transmission channels, bcbs, april 2021. eba report on management and supervision of esg risks for credit institutions and investment firms, eba, june 2021. guide on climate - related and environmental risks, ecb, november 2020. banco de espana supervisory expectations relating to the risks posed by climate change and environmental degradation, banco de espana, october 2020. and their risk management. at global level, the bcbs has published for consultation a paper on principles for the effective management and supervision of these risks. 11 in any event, the improvement in banks ’ management capability will presumably have to be supplemented by the development of a regulatory and prudential framework that properly takes into account the special features of the risks associated with climate change. there are two preliminary issues here : the existence of information and common taxonomies and the development of measurement methodologies. the need for common definitions and granular data to assess climate risks correctly, first it is necessary to have common definitions and data of sufficient quality and granularity. the network for greening the financial system ( ngfs ), of which we, among 108 central banks and supervisory authorities from all over the world, are members, published in may 2021 a report12 emphasising the importance of having common worldwide definitions and standards for disclosure of information associated with these risks. common definitions owing to the complexity of the matter, the progress made towards establishing a global taxonomy is, unfortunately, still limited. not only are productive technologies characterised by great heterogeneity at any given moment in time, which affects