these entities to pay on time, a huge boon to the system. yet another technological development to watch is the alliance between internet marketplaces and financial firms. the information obtained from monitoring sales and cash flows of the online merchant can be the basis for making him a loan and recovering payment. i am especially excited by the possibilities afforded the carpet seller from srinagar, who can display her wares across the globe, with the marketplace arranging marketing, logistics, and finance for her. financial inclusion the prime minister ’ s jan dhan yojana has created accounts for much of the excluded population. government has taken the next step of attaching a variety of financial services such as accident and life insurance to these accounts, and sending direct benefits such as scholarships, pensions, and subsidies to these accounts. we also have to ease access to bank accounts through business correspondents, payment banks, and point - of - sales machines so that they are used frequently. easy payments, access to cash - in and cash - out facilities, and widespread availability of safe savings instruments have to be our next objectives in the financial inclusion of households. when credit leads the process of financial inclusion, we risk lending to people who have little ability to manage money and overburdening them. by drawing them into the formal system through savings and payments first, then insurance, we get them accustomed to managing money before tempting them with credit. this is the successful method we have followed with self help groups, and is what we should do more widely. importantly, we need a variety of firms and ngos to help small businesses with management advice so that they can flourish. technology will also help reduce transaction costs, facilitating inclusion. we now have an internet portal ( vidyalakshmi ) where students can apply to a variety of banks for education loans. we are exploring a similar portal for msmes, where msmes can apply easily to banks and where we can monitor timely responses to the loan applications. in all such lending, we need to address the issue of collateral. credit flows easily only when the lender is persuaded that he will get his money back, so easier access to credit necessitates harsher consequences of default, including the loss of collateral. aadhaar has given individual borrowers the possibility of using their future access to credit as collateral. i do hope the supreme court clears up the cloud over its use quickly. but there are also situations where borrowers have physical collateral they can use to lower their cost of credit and

could enjoy greater policy space than countries with open capital account and flexible exchange rate ), ( c ) spillover management that may involve some sacrifice of domestic policy goals could be feasible only when every country pursues spillover - sensitive national policies, and the global governance structure would need to ensure that, using a mix of both persuasion and multilateral enforcement, and most importantly ( d ) global safety nets should be strong enough with easier access norms to encourage countries to voluntarily adopt the multilateral norms. bis central bankers ’ speeches