knowledge and skills not only enhance quality and efficacy of education, but also improve the potential for research and innovation. given the higher level of ger to be achieved by 2020, bis central bankers ’ speeches a large number of teachers would be required to educate the growing young population. maybe, students could be used as teachers, especially good students coming from lower income groups so that they can be partly be compensated. further, barring some leading schools / universities / autonomous educational institutions, many of the teachers of colleges / universities need to hone their skills / talent. there is a need to encourage teachers to participate by presenting research papers in seminars / workshops / conferences and receive periodic trainings for updation of knowledge / skills. it is equally important that a feedback mechanism from students is introduced in universities / colleges to assess and evaluate teachers ’ role in the institutional developmental process. quality of education given that we need to compete globally in the 21st century, our education system should adopt certain benchmarking techniques for improving instruction models and administrative procedures in universities / colleges to move forward. i suggest that we need a thorough study and evaluation of models implemented elsewhere and work out strategies to adopt such models in our system. benchmarking in my opinion would provide benefits to our education system in terms of reengineering, setting right objectives, etc. the country is showing consistency in economic growth pattern, leading the world in terms of information and technology, modernization various economic activities and pushing for higher share of industries and services sectors of the economy but there is one area which needs reform is “ education system ”. while it is true that some investments are taking place in the country ’ s higher education system, we are yet to establish world class research facilities, recruiting profound academicians in universities / colleges / research institutions, etc. to sustain and forge lead in economic development. it is important to understand that countries like china, singapore, south korea, etc. are moving fast in investing in education system. therefore, it is imperative that our educational institutions are equipped with the desired quality and standards which are essentials for transforming the younger workforce into productive ones. needless to reiterate that in the higher education system focus on use of technology for effective learning by students also need to be encouraged to have cutting edge over our competitors in the globalised world. making education affordable in india, if education has to reach all deserving students, it should be made affordable. the fee structure in government owned / sponsored institutions is inexpensive in india

issues from the viewpoint of private law from a slightly different angle, i will talk about the second legal point at issue. i have mentioned that a central bank achieves its public objective of currency stability through transactions in the market. in doing so, the services provided by the central bank must be attractive. therefore, the central bank has been trying various measures in accordance with the changes in the economic and financial environment, and i will explain the role law has been playing in that respect, mainly focusing on private law. earlier i explained the introduction of a scheme to provide funds against foreign government bonds as eligible collateral – a cross - border collateral arrangement. in order to put the scheme into practice, there were numerous legal issues to be cleared. first, a question of private international law : which country's law would be applied in creating the security interest over foreign government bonds physically located in foreign countries. second, a question of the legal framework for collateral in foreign countries : how to create the security interest and how to exercise the security interest in case of default. third, a question of international financial business practices : what kind of contract should be concluded with a counterparty. while it is a difficult job to examine each country's legal system and hammer out responses, it is nevertheless worth challenging and it is fascinating. i just mentioned " foreign government bonds physically located in foreign countries ", but in fact government bonds of japan and other major countries are dematerialized and transfers and pledges of these bonds are made by making entries into securities accounts. in the bank of japan's cross - border collateral arrangement, with the transfer of a country's government bond to a securities account held with the country's central bank, the security interest will be created based on the country's law. while details vary by country, such a scheme has enabled financial institutions to efficiently use securities, wherever they are physically located, as collateral to borrow necessary funds from various central banks around the world. such innovations are necessary not only in the area of legal knowledge but also in the areas of the payment and settlement system and computer system. the bank runs a system called the bank of japan financial network system ( boj - net ), and transactions between financial institutions are settled in that system. when the boj - net is used to settle the sale and purchase of securities, there is a scheme to simultaneously carry out the delivery of the securities and payment of funds ; it is called delivery versus payment ( dvp )