annual review meetings are being held with cmds of banks to ensure top management support and commitment to the fi process. what has been achieved so far? 15. a snapshot of the progress made by banks under the fips ( april 10 – march 13 ) for key parameters, during the three year period is as under : nearly 2, 68, 000 banking outlets have been set up in villages as on march 13 as against 67, 694 banking outlets in villages in march 2010 about 7400 rural branches opened during this period nearly 109 million basic savings bank deposit accounts ( bsbdas ) have been added, taking the total no. of bsbdas to 182 million. share of ict based accounts have increased substantially – percentage of ict accounts to total bsbdas has increased from 25 % in march 10 to 45 % in march 13 with the addition of nearly 9. 48 million farm sector households during this period, 33. 8 million households have been provided with small entrepreneurial credit as at the end of march 2013 with the addition of nearly 2. 25 million non farm sector households during this period, 3. 6 million households have been provided with small entrepreneurial credit as at the end of march 2013. about 4904 lakh transactions have been carried out in ict based accounts through bcs during the three year period 16. it is important to analyse this progress against the some disconcerting trends that were noticed in the run up to the structured financial inclusion initiatives that the banks launched since 2010 onwards. first, the number of banked centres in the country between 1991 and 2007 had actually come down ( from 35236 to 34471 ). second, the number of rural branches during the same period had also declined significantly ( from 35206 to 30409 ). against this backdrop, the progress made during 2010 – 13 is certainly remarkable. financial inclusion plan 2013 – 16 17. in order to continue with the process of ensuring access to banking services to the excluded, banks have now been advised to draw up a fresh 3 year financial inclusion plan for the period 2013 – 16. banks have also been advised that the fips prepared by them are disaggregated and percolated down up to the branch level. the disaggregation of the plans is being done with a view to ensure involvement of bank staff across the hierarchy, in the fi efforts and also to ensure uniformity in the reporting structure under the financial inclusion plan. the focus is also now more on the

y v reddy : financial stability - indian experience speech by dr y v reddy, governor of the reserve bank of india, zurich university, zurich, switzerland, 27june 2004. * * * i am thankful to the bis for inviting me to share some thoughts on financial stability issues in the panel of four governors. it is an honour to address the galaxy of central bankers assembled here in connection with the annual meetings of the bis. my observations are based on the indian experience and would focus on rebalancing of efficiency and stability in the context of financial sector reforms in india. in india, we have been moving from a government - dominated financial system to a market oriented one. in the past, the government domination was, in a sense, imparting too much stability through rigidity and too little efficiency. in this context, enhancing efficiency while at the same time, avoiding instability in the system, has been the challenge for the regulators in india. the concept of financial stability needs to be understood contextually also. for us in india, it means : ( a ) ensuring uninterrupted financial transactions ; ( b ) maintenance of a level of confidence in the financial system amongst all the participants and stakeholders ; and ( c ) absence of excess volatility that unduly and adversely affects real economic activity. such financial stability has to be particularly ensured when the financial system is undergoing structural changes to promote efficiency. the structural changes relate to ownership, regulation and competition, both, domestic as well as external competition. integration of financial markets is another dimension of the process : the integration of domestic financial markets is one aspect while global financial integration is another though a related aspect. while global financial integration does have beneficial impact, the volatility in capital flows can cause instability, specially if a country has not reached the “ threshold ”, as very ably explained by professor kenneth rogoff of harvard university. many emerging market economies do not seem to have adequate self - correcting market mechanisms in respect of such cross - border capital flows. in such cases, the capital flows at critical times reflect more of changes in the risk appetite of the international investors than a country ’ s fundamentals. hence, special defences need to be put in place for ensuring financial stability in the case of countries like india that are faced with the prospect of volatile capital flows. the issues relating to cross - border supervision of financial intermediaries in the context of greater capital flows are just emerging and these need to be