sophisticated they are, they may also trade some stocks, transfer some cash from their euro a / c to usd a / c put up a lump sum in a mutual fund or sign up a home insurance policy online ”. 14. the above statement denotes the diverse set of banking applications which technology can support. in fact, there is a need of a single channel solution to multiple product offerings. it must, however, be remembered that technology is just an enabler. almost all banks in india have invested heavily in web - based and mobile - based delivery banking and payment solutions. very often, these channels are supported by different vendors and also one use different technology which increases complexity and involves cost. technology is ever evolving and adoption of new technology for staying contemporaneous is a costly proposition. it is pertinent, therefore, that all the capabilities of the technology enabled delivery solutions are optimally exploited, so that we are not saddled with unproductive investments. 15. while there is a lot of euphoria around the adoption of mobile banking and mobile payments, the model has been relatively less successful barring a few countries where the right environmental factors existed. i am talking here about the delivery of financial and payment services by using the mobile device rather than its use as an access channel for internet banking etc. in the indian context, an objective analysis would reveal various reasons for slow adoption. there are technical issues like type of handsets, variety of operating systems, encryption requirements, inter - operable platforms or the lack of it, absence of standardised communication structures, difficulty in downloading application, time lag in activation etc. these get accentuated by the operational difficulties in on - boarding merchants and customers and customer ownership issues. the interplay of these factors has stymied the deployment and adoption of mobile banking as an effective and widely accepted delivery channel. issues of coordination and cooperation between banks and telcos, is another aspect which acts as either a driver or a barrier to the adoption of mobile banking. bis central bankers ’ speeches these issues need to be quickly resolved if the mobile payments have succeed in our country. emerging scenario 16. it would be interesting here to visualize few scenarios which may emerge in future : • simultaneous impact of playing out of reed ’ s law and moore ’ s law where both “ the payment space ” and “ the pinpoints ” within the space would grow exponentially. • whether some of the technology companies and retail banks can undergo transformation to such an

we were in agreement that the swedish business cycle is fairly close to the point at which it is reasonable to give monetary policy a less expansionary stance. although we all endorsed the outlook for inflation and the economy in the inflation report a number of us were of the opinion that it provided scope for somewhat different interpretations of exactly when the interest rate needs to be raised. i myself and two other members for a more detailed overview of the debate ; see bean, c. ( 2003 ), " asset prices, financial imbalances and monetary policy : are inflation targets enough? ", speech at a bis conference on " monetary stability, financial stability and the business cycle ", 28 - 29 march 2003, basel, switzerland. ( http : / / www. bankofengland. co. uk / publications / speeches / 2003 / speech200. pdf ) interpreted the analysis in such a way that we deemed an increase of 0. 25 percentage points to be warranted already at the time of the monetary policy meeting. allow me to say something about the reasons that, in my opinion, suggest that it would have been appropriate to take a first step towards less expansionary monetary policy at the beginning of december. one is that there hardly can be any doubt now that we are in the midst of a strong, stable cyclical upswing. the economic climate has improved in the us and asia and the swedish labour market is showing clear signs of a recovery – not least statistics from staffing companies are pointing to a pick - up in demand for labour. another reason is that an interest rate rise would reduce the risk of the krona weakening further as monetary policy in other countries gradually becomes less and less expansionary. the interest rate differential in relation to the euro area and the us seems recently to have had great significance for developments in the krona exchange rate. a third reason – perhaps the most important – has to do with what i have spoken about here today. my assessment is that house prices and household debt may very well have reached levels at which there is a risk of there arising a self - reinforcing negative spiral with falling house prices and weak demand growth when the business cycle eventually turns down. even if it were not – as i already pointed out – a case of a correction of an overvalued market, such an adjustment could be comparatively abrupt. in my opinion, an earlier initiated and more gradual raising of interest rates would increase the chances of a more orderly slowdown in the rate of price