to encourage greater degree of financial inclusion in the country ; setting up of a mechanism for ensuring fair treatment of consumers ; and effective redressal of customer grievances. conclusion with the increasing levels of globalisation of the indian banking industry, evolution of universal banks and bundling of financial services, competition in the banking industry will intensify further. the banking industry has the potential and the ability to rise to the occasion as demonstrated by the rapid pace of automation which has already had a profound impact on raising the standard of banking services. the financial strength of individual banks, which are major participants in the financial system, is the first line of defence against financial risks. strong capital positions and balance sheets place banks in a better position to deal with and absorb the economic shocks.

shri vepa kamesam : roll - out strategy for rtgs implementation inaugural address by shri vepa kamesam, deputy governor of the reserve bank of india, at a meeting with cmds of banks, mumbai, 21 july 2003. * * * i welcome you all to this meeting. i am glad to share with you that the implementation of the rtgs project has progressed significantly and is now critically poised. even when i am speaking to you, the demonstration of the demo rtgs system to a group of bank officials is in progress in our bankers ’ training college. the rtgs system is scheduled to be delivered by the end of october, 2003, followed by installation, testing and commencement of parallel run before the year - end. therefore, we have to now prepare ourselves for the roll - out of the rtgs system. incidentally, my colleagues have been regularly meeting with your nodal officers for the project and other officials to assess your preparedness for participation in the rtgs system. friends, there will be a single rtgs system for the country and all of us have to make co - ordinated and concerted efforts to ensure that the entire nation optimally benefits from the introduction of the rtgs system. i take this opportunity to update you on the recent developments in the payment systems area. one of the primary objectives of every central bank is to put in a place a modern, robust, secure and integrated payment and settlement system to enable the common man to make payments to anyone he likes in the most efficient and cost effective manner. the ultimate beneficiary of the payment system has to be the ordinary bank customer. in fact, our vision has been “ anyone can make payments to whomsoever one likes, whenever one likes, in whatever type of currency one likes, at the cost of a few cents per transaction. there are no settlement delays or mountains of paperwork and value is received instantaneously. there are no distinctions in costs or delays between a domestic and a foreign currency transaction. interest is computed real - time rather than on a “ settlement day ”, a relic from the ancient times, when accounting was done manually. finally, privacy and security are guaranteed. ” the rtgs system will facilitate large value inter - bank payment and settlement in real time online mode on a transaction by transaction basis. it will enhance systemic efficiency and minimise the existing settlement risks. in fact, the rtgs system the world over has come to be regarded as the sin