cross border transactions in current systems and may create altogether new frameworks for financial system to operate in. i believe, like in the case of upi, we will witness a lot of innovation on this tokenised form of money in the days to come. the rbi is mindful of the fact that innovation has potential to make finance more inclusive, the financial system more competitive and healthier, and regulation more effective and efficient. while innovation is crucial, it is necessary for these innovations to be responsible and even more beneficial if they address actual challenges faced by people in their day to day lives. it is also important for these innovations to be scalable and interoperable, allowing for expansion and providing advantages to a wider network of participants. bearing these principles in mind, i would urge fintech players to contribute to development of the sustainability of the sector and ensure responsible digital innovations. while focus on short - term valuation gains may look attractive, creating long term value should be the basic goal. fintech companies can prioritize several key areas, like improving customer protection, enhancing cybersecurity and resilience, effectively managing financial integrity, and robust data protection. it is also essential for every player in the fintech industry to devote sufficient attention to governance, business conduct, compliance, and risk mitigation frameworks, as these aspects are vital for long term sustainability. i conclude by emphasizing that it is crucial for regulators, the fintech industry, and established institutions to engage in open and meaningful dialogue. this dialogue is necessary to establish a shared understanding of fintech activities, business models, and the rationale behind regulatory measures. such collaboration among stakeholders will play a key role in ensuring effective regulation and fostering a conducive environment for fintech innovation. thank you all for your attention, and have a fruitful convention. 3 / 3 bis - central bankers'speeches

not strictly the topic for today ’ s hearing, it seems appropriate to include some words on this. institutional reform in the central bank since 2009 the 2010 legislation ( central bank reform act 2010 ) confirmed the reintegration of the regulatory and supervisory apparatus fully within the central bank. the separate authority was abolished and its powers transferred to the renamed central bank commission, with most regulatory powers delegated to the deputy governor ( financial regulation ). the legislation also introduced some other changes including a clearer definition of the goals of the central bank. extensive actions were launched to enhance the central bank ’ s capacity and ensuring its delivery of an intrusive and effective risk - based financial supervision as well as a pro - active approach to systemic financial stability policy. these have been addressing, inter alia, the identified issues of insufficient cooperation and limited communication between different divisions and sections, an unduly hierarchical structure and deference to authority and a reluctance to carry decisions to conclusions and effective action. there have been significant changes in the policy approach. for example, banking is no longer de facto exempt from enforcement actions as it was in practice before 2008 : banks now know that regulatory breaches leave them open to penalties. thanks to the new legislation the central bank ’ s focus is no longer blurred by the potentially conflicting objective of developing the financial services industry. substantial expansion of staff on supervision and regulation ( responding not only to objective assessment against comparators that more staffing was needed but also to public demand that underachievement could not be at the time of the report, only a broad indication of the potential fiscal costs could be attempted, given the unprecedented scale of troubled loans and the fact that so few had yet been worked through ( only a handful of nama ’ s loan purchases had been priced ), and other complexities. even now a precise estimate is not yet possible : current valuations of the state ’ s banking shares suggesting a figure for the net long - term fiscal costs of bank recapitalisation of the order of 22 per cent of 2008 gdp may be compared to the “ in excess of 15 per cent ” mentioned in the report. ( the latest figure is still within the maximum of the range that i conjectured at an oireachtas committee hearing in the summer of 2009, before i became governor ). bis central bankers ’ speeches tolerated ). this included injecting new energy and a fresh approach by opening up the numerous senior appointments that needed to be made to candidates outside of the bank