too. thus, in the initial stages of evolution of oversight structure for regulation and supervision of payment and settlement systems, a greater attention may be given to systemically important payment systems ( sips ) as compared to retail payment systems, for obvious reasons, especially as these sips usually handle payments of large value and settlement of inter - bank transactions emanating from financial markets pass through such systems. however, as regulatory attention on these large value payments get stabilised and simultaneously developments in retail payment mechanisms evolve, the span of oversight attention widens to encompass these systems as well. let me briefly highlight some of the issues that merit attention in the context of retail payment systems. i am not sure whether a standard definition of “ retail payment system ” has been given anywhere, but a reference to the “ glossary of terms used in payment systems ” ( by cpss – committee on payment and settlement systems ) shows that “ retail payments ” are defined as mainly consumer payments of relatively low value and urgency. accordingly, “ retail funds transfer system ” is defined as a “ system which handles a large volume of payments of relatively low value in such forms as cheques, credit transfers, direct debits, atm and eftpos ( electronic funds transfer at point of sale ) transactions. even going by this working definition, what clearly emerges is that the user base for retail payment systems is very large as they touch every economic activity in the country and even cross - border transactions of such nature. in terms of volumes, paper - based and electronic retail payment systems far exceed the large value payment transactions, while they may be lower in terms of value. efficient retail payment systems bring in operational efficiencies for all commercial activities and greatly facilitate e - commerce. recent developments in payment systems, aided by developments in information and communication technologies, have provided customers with a wide array of choices, demanding greater levels of efficiency and safety in their operations. further, final settlement of transactions from many of these retail systems may also occur in one or the other large - value payment systems, increasing their systemic importance. thus, such retail payment systems, even though they are not sips, can be aptly called as systems of system - wide importance. oversight arrangements of such systems should, therefore, not lose sight of this relevance of retail payment mechanisms in the larger economic context. the presence of a sound legal framework greatly enhances the efficacy and efficiency of the oversight function. in india, we have recently enacted the payment & settlement

customer identification and kyc purposes, providing low - value one - toone transfers on a 24x7 basis, etc. giving a logical direction to settlement finality in netsettlement systems by examining guaranteed settlement is yet another thought process. ladies and gentlemen, you would agree with me that the host of issues that revolve around the retail payment systems cannot be addressed in a matter of few minutes. all that i have attempted is to draw your attention to the important issues that any regulator needs to be conscious about. i am sure over the next three days some of these issues may see solutions emerging with your active participation. at the end of the seminar, let us all hope to carry with us sufficient knowledge to steer the course of the retail payment systems not just within our jurisdictions but also strive to harmonise the efforts of retail payment activities across jurisdictions. let me conclude by quoting what leonardo da vinci had said – “ i have been impressed with the urgency of doing. knowing is not enough ; we must apply. being willing is not enough ; we must do. ” what was true then is equally applicable today. i wish you all the very best and happy deliberations.