##rences of similar incidents. idrbt has been nominated as the sectoral cert for banking and financial sector. i suggest that banks coordinate with idrbt and make use of this for fighting cyber intrusion. it vision document 2011 - 17 38. coming to the concluding part of my address, i would like to draw your attention to the rbi ’ s recently released it vision document for 2011 - 17, the major recommendations of which relate to transforming the rbi into a knowledge organisation, using it as a strategic resource, improving it governance and reviewing of it processes for better alignment between business objectives and it. the action points that emerge for rbi and banks from this document relate to the following issues : focus for rbi 39. the main recommendation is for the reserve bank to transform itself into an information intensive knowledge organisation. other recommendations include harnessing human resource potential, migrating to enterprise architecture for it systems and adopting appropriate business process re - engineering. conformity to internationally accepted standards and usage of business intelligence from data warehouse for optimal management information systems ( mis ) with effective decision support systems ( dss ) are also recommended. 40. improved it governance, effective project management, evolution of well defined information policies as well as information security frameworks, better vendor management and outsourcing practices are the other significant recommendations of the document. the document also suggests reviewing of it processes for better alignment between business objectives and it. focus for banks 41. the vision document sets priorities for commercial banks to move forward from their core banking solutions to enhanced use of it in areas such as mis, regulatory reporting, overall risk management, financial inclusion and customer relationship management. it also dwells on the possible operational risks arising out of adopting technology in the banking sector which could affect financial stability and emphasizes the need for internal controls, risk mitigation systems, fraud detection / prevention and business continuity plans. 42. although banks have deployed technology for transaction processing, analytical processing by banks is still in a nascent stage. banks may work towards reaping benefits of technology in terms of cost reduction, improved customer services and effective flow of information within the banks and to the regulator. the reserve bank has drawn up an action plan to implement the recommendations of the vision document. a high powered committee has also been constituted in the reserve bank which has the responsibility to ensure time bound and effective implementation of these recommendations. bis central bankers ’ speeches conclusion 43. in conclusion, i would like to say that banks need to take a disciplined approach to it architecture,

be achieved without the bis central bankers ’ speeches development of new business ideas, innovative products and services and focus on retention of customers. financial inclusion and technology 18. financial inclusion is high on the agenda for the reserve bank as well as banks. operating cost of providing financial inclusion and charges levied on the users are important dimensions of the process of financial inclusion. technology has to play an important role in reducing the transaction cost of banking services, particularly in the rural and unbanked areas so as to make financial inclusion a commercially viable proposition for banks. this may come about, for example, if banking service providers are willing to enter into passive infrastructure sharing. the challenge for banks, in the context of financial inclusion, would be to get the technology pieces together and adopt a strategy that is viable and sustainable in the long run. 19. major steps have been taken by reserve bank of india ( rbi ), government of india and banks, to enable financial inclusion of weaker sections of the society. it is the differential factor in this regard. the game changers in the realm of financial inclusion i. e. the uid project, mobile banking, hand - held devices, smart cards, business correspondents, routing of payment under government social schemes through banks and micro - finance, are the factors that will take financial inclusion a long way in the country. technology management 20. technology includes the use of materials, tools, techniques and sources of power to make life easier or more pleasant and, work, more productive. whereas science is concerned with “ how ” and “ why ” things happen, technology focuses on “ making ” things happen. technology influenced human endeavour as soon as people began using tools. it accelerated with the industrial revolution and the substitution of machines for animal and human labour. accelerated technological development has also had costs, in terms of air and water pollution and other undesirable environmental effects. 21. another aspect of relevance in the present circumstances is technology management. as we are aware, technology management is a subset of management discipline that allows organizations to manage their technological resources to create competitive advantage. each organization has to decide its strategy, possibly, by identifying emerging technologies to suit business and market needs. 22. the role of the technology management function in an organization is to understand the value of technology for the organization. continuous development of technology is valuable, as long as there is a value for the customer and, therefore, the technology management function in an organization should be able to guide when to invest on technology