many are illiterate or innumerate, giving rise to significant consumer protection challenges especially in emerging but also in advanced economies. again, central banks and other financial regulators and policy makers, have very critical roles to play to ensure that sound market practices are accompanied by robust consumer protection and financial education. it is vital that we encourage responsible financial inclusion. furthermore, to understand these fast moving developments and adopt the right policies to address financial exclusion, we need more and better data. in this regard the influence of central banks – alongside a growing number of other bodies such as telecommunications authorities – is vital for highlighting existing data and encouraging the collection of new indicators to keep us ahead of unfolding developments. financial innovations are evolving before our eyes, and we are being challenged to keep up with them and to manage them properly. but with the balanced approach their impact on the world ’ s financially excluded could be tremendously positive. i look forward to discussing these and other issues highlighted in the note that the bis staff has kindly produced for our meeting today. i hope to hear a lot today from the many leaders around this table, who have made great strides in financial inclusion. thank you. bis central bankers ’ speeches

largely occur due to it systems hardware failure, application systems crashes, non - availability of infra resources such as power, bandwidth etc. all these factors could completely halt the business process with all - round negative fallouts. to address the unintended failures, an institution is expected to take several steps such as adoption of board - approved it governance policies, establishing data centres, third party contracts, robust service level agreements, is audit etc. as far as the risk of unintended failure is concerned, the it management policy framework that has evolved over a period of time along with corporate governance has addressed the risk factors to a large extent. all these have come at a huge cost, but a definite resilience has been achieved. however the intended intrusions to disrupt business, misuse the information available at the institutional level and to perpetrate fraud at the customer level continue to be orchestrated largely by a sophisticated group of cyber criminals. tackling cyber threats 5. while vulnerabilities in software and network continue to be the target of cyber attackers and defending these resources remain the focus of every organisation, the weakest link continues to be the user. data breach arising from phishing attacks and social engineering continues to be on the rise. no doubt banks have made significant efforts to educate the user on safe banking, but it is often found to be inadequate in the face of a targeted attack. social media provides the platform required for an attacker to mine information on an individual. this information is then used to make the user believe that he is communicating with a legitimate source. with easier access to social media and the tendency to share personal information, the number of users that are exposed to such attacks will continue to increase. internet of things is no longer just a catch phrase. today, a typical indian home has mobile phones, tablets, laptops, smart tvs and gaming devices all connected to the internet and with each other. it is estimated that by 2020 there would be 30 billion wireless devices connected to the internet of things. most of these devices have not been principally designed with security in mind. the issue that i am trying to flag is that as we acquire more and more modern electronic gadgets, there will be a large number of insecure devices that co - exist on the same network with more secure ones. since in an interconnected world, security is as good as the weakest link, the criminals will attempt to exploit a less secure but trusted device to attack the critical and well protected