policies specified that banks could establish a new bank branch in a location with one or more bank branches only if they set up four branches in a location with no new bank branches this regulatory prescription ensured that banks opened rural branches in states where financial development was lower to address the regional inequities in development. their results to evaluate the impact of a new rural branch on poverty suggested that a one percent increase in the number of banks in rural locations reduced rural poverty by 0. 36 % per cent and increased total output by 0. 55 % per cent rural branch expansion also increased non primary sector output and non - agricultural employment. these favourable effects show the positive influence of bank branches on economic bis central bankers ’ speeches development banks to the 1990s disbursed a greater share of credit to the less developed states this trend reversed after the 1990s. iii. in the annual policy statement for 2013 – 14, banks have been advised to consider frontloading ( prioritizing ) the opening of branches in unbanked rural centres over a three year cycle co - terminus with their fips. this is expected to facilitate faster branch expansion in unbanked rural centres. “ step into a bank step out of poverty is our central message ” iv. business correspondent / business facilitator model. in january 2006, the reserve bank permitted banks to utilise the services of non - governmental organizations ( ngos ), micro - finance institutions ( other than non - banking financial companies ) and other civil society organisations as intermediaries in providing financial and banking services through the use of business facilitator and business correspondent ( bc ) models. the bc model allows banks to do “ cash in – cash out ” transactions at a location much closer to the rural population, thus addressing the last mile problem. as on march 31 2013, banks have reported deploying 1, 95, 380 bcs which covered 2, 21, 341 villages. v. introducing technology. to ensure sustainability and scalability of business model, technology was adopted. it leads to higher costs at initial stage however ; it brings better opportunities and optimization of result. the uid is also good instrument of connecting to all the people once it gets effectively operational. vi. the direct benefit transfer scheme and the adhar number are going to be very significant in the years to come the rbi has accepted adhaar as a proof of identity and as fulfilling kyc requirements 1st of january, 2013. nearly 11 lakh beneficiaries have received the benefit

of central banks which document their institutional history. we have so far published three volumes of history covering the period since the inception of the bank up to 1981. volume i, straddling the period from 1935 to 1951, highlights the early efforts to establish a central bank in india, particularly the concrete proposal made by john maynard keynes in 1913 to set up a “ state bank ” in india by merging the three presidency banks to undertake some of the functions of a central bank. volume ii narrates the reserve bank ’ s role in the process of development planning from 1951 to 1967. the highlight of the third volume of history, covering the period from 1967 to 1981, is its depiction of reserve bank ’ s efforts to deepen banking into india ’ s hinterland. rbi history – volume iv 6. this brings us to the present volume iv which covers the period from 1981 to 1997. this straddles the leadership of six governors, starting with the last phase of governor i. g. patel. bis central bankers ’ speeches 1. dr. i. g. patel : 01. 12. 1977 to 15. 09. 1982 2. dr. manmohan singh : 16. 09. 1982 to 14. 01. 1985 3. shri amitabha ghosh : 15. 01. 1985 to 04. 02. 1985 4. shri r. n. malhotra : 04. 02. 1985 to 22. 12. 1990 5. shri s. venkitaramanan : 22. 12. 1990 to 21. 12. 1992 6. dr. c. rangarajan : 22. 12. 1992 to 21. 11. 1997 7. apart from the prime minister, i am happy to acknowledge the presence here of two other former governors from that period – shri amitabha ghosh and dr. rangarajan. shri venkitaramnan is unable to be here today, but sends his best wishes for this function. as this is a “ history moment ”, our thoughts also go back to late dr. i. g. patel and late shri r. n. malhotra, both of whom served the reserve bank with great dignity and distinction. 8. the period covered by this fourth volume of rbi history was by far one of the most challenging times for our economy. the history takes us through the difficult times when the government and the reserve bank had to contend with unprecedented strains on the external payments situation. in response to the balance of payments crisis, the