or informal financial sectors ; • to formulate debt restructuring plans for borrowers in distress and recommend the same to formal financial institutions, including cooperatives, for consideration ; • to take up any such activity that promotes financial literacy, awareness of the banking products, financial planning and amelioration of debt - related distress of an individual ; and • to take up any other activity that facilitates the above. once feedback is received, the initiative could be carried forward in consultation with all stakeholders. conclusion i would like to conclude by quoting from one of governor dr. reddy's speech : " banking is a trust - based relationship and the banking licence from the regulator provides an assurance of trust to the public at large. to the banks, the banking licence provides the privilege of accepting uncollateralised deposits from the public. however, the acts of stealth banking, negative option marketing, misleading advertisements, information gathering from customers for cross selling of products and services, and tie - up arrangements are inconsistent with the concept of a trust - based relationship. the lack of transparency, coupled with the difficulty of consumers in identifying key information from the large volume of material and communication in fine print, leads to an information asymmetry, which renders the banker - customer relationship one of unequals. " the broad approach of rbi is to empower the common person where banking services are concerned and strengthen customer - service delivery in banks by adopting a consultative process with banks, through the iba. specifically, the focus is on : a ) sensitising banks to customer service and encouraging the involvement of the boards of the banks, especially to strengthen the banks own grievance redressal machinery. b ) insisting on transparency in all the dealings with the customers, and ensuring reasonableness in pricing. c ) promoting adherence to self imposed codes by banks on commitments to bank customers and monitoring compliance by an independent agency, viz. bcsbi. d ) strengthening the mechanism for dispute resolution. e ) using regulation / prescription only when essential, while encouraging the industry association ( iba ) to take initiatives. f ) rationalising rbi's own systems and procedures. it is a constant endeavour to meet the above objectives and collectively, i am sure we can build a customer - oriented banking culture and, through the initiatives on financial inclusion, achieve democratization of the financial sector.

: 2010 = 100 ) cpi - urban and 56. 6 per cent in new cpi - rural. third, the inflation expectations survey of households uses quota sampling to get adequate representation of the gender, occupational categories and age groups. empirical validation through a bootstrap confidence interval worked out for the overall inflation expectations showed that the width of the confidence interval was quite narrow. also the size of the confidence intervals increases with the time horizon, indicating that the respondents are more coherent on their perception of the current and very near term ( 3 - months ) inflation than their expectations of near future ( 1 - year ). fourth, the inflation expectations of households, however, are their own perceptions based on their own consumption basket which may not directly correspond to any official measure of inflation. this is reflected in significant heterogeneity across households within the survey. however, to see how the average expectations behave compared to the official headline bis central bankers ’ speeches measure of inflation, these expectations have been plotted against wpi inflation. while there is a significant difference in the level of inflation between the headline wpi and the survey, notably households ’ 3 - month ahead inflation expectations have been, by and large, tracking wpi turning points ( ex - post ) ( charts 3 ). this suggests that the households ’ inflation expectations are adaptive with significant learning. while households do not revise their expectations unless they see changes on the ground, they are willing to change their expectations with the actual outcome. fifth, while the professional forecasters give their immediate term forecast of inflation, it is also an important source of medium - to long - term inflation forecast. the forecast of the professional forecasters can be considered rational as they apparently process all available information including the central bank ’ s likely reaction function to arrive at their medium - to long - term inflation forecasts. as regards their short - term inflation forecast, as more information becomes available, the forecasters revise their forecasts to incorporate the latest information and the revised quarter ahead forecasts tend to converge to the actual numbers ( chart 4 ). sixth, professional forecasters ’ long - run inflation expectations have been influenced by the trend in actual inflation. in the last quarter of 2007 – 08, the 5 - year ( 10 - year ) wpi inflation expectations at 5 per cent ( 4. 5 per cent ) was aligned to the reserve bank ’ s comfort level. the consumer price ( cpi - iw ) inflation expectation was slightly higher at 5. 5 per cent (