instruments issued outside the country but subsequently traded by at least one institution within the country would be liable ). further, evasion could be discouraged by adopting the example of stamp duty in united kingdom, and of brazil, where non - payment of the tax makes legal enforcement of such contracts difficult. there is also significant merit in considering anti - avoidance rules in taxation for regulation of the financial sector as well. thus, if the sole purpose of an instrument or institution in the financial sector is to avoid a regulation, such transactions can be considered void for the purposes of regulation. thus, a distinction can be made in financial sector regulation, as in the case of taxation, between planning, avoidance and evasion. above all, taxation and the use of information thus acquired for regulation of financial sector would considerably enhance the effectiveness of both fiscal and financial management. concluding remarks i believe that society expects central banks to ensure trust and confidence in money and finance, and hopes that they avoid the pitfalls of capture, while the common person seeks inclusive finance. it is not easy for central banks to deliver all this, but they should not ignore society ’ s expectations. in these efforts, central banks need to preserve space for public policy at the national level consistent with their obligations to the global economy. the financial sector may draw lessons from global coordination in other industries, especially in managing networks. global trends in financial sector regulation may see simultaneous re - regulation in some countries and deregulation in others. innovations, by definition, are difficult to put into preconceived straitjackets, and a disaggregated contextual approach would be appropriate. above all, better regulation warrants effective regulation. consideration of regulation, competition and ownership in an integrated manner, enhanced monitoring of financial market activities and the use of fiscal tools to supplement regulation could be helpful in this regard. friends, society has put its trust in central banks. central banks have to ensure that bank managements and the financial sector in general serve the masses, and not merely the elite or the financially active. in the ultimate analysis, central banks are trustees, agents to look after the interests of the masses. references arcand, jean - louis, enrico berkes and ugo panizza ( 2012 ) “ too much finance? ” international monetary fund, wp / 12 / 161. june. www. imf. org / external / pubs / ft / wp / 2012 / wp12161. pdf. balachandran

sensitivity and in empathetic behavior towards the special niche clientele of the rrbs. the pay off in terms not just of profitability but in terms of job satisfaction assuredly, will be tremendous. 20. to close with a few clear messages for easy recall : • please ensure that all the rrb staff are aware of, clearly understand and commit to the bcsbi codes. • the codes are evident in precept and practice and in the actual business of the banks • customer empowerment occurs as knowledge and awareness of customer rights is enhanced. once again i thank the bcsbi for this opportunity and commend them on the initiative of hosting this conference. bis central bankers ’ speeches