surmounted and pave the way for a massive disruption in the way banking is conducted today. ( ii ) how long can the banks continue increasing their retail loan portfolio? unless some means to pool and distribute these loans to other investors in the market is created, the retail lending pipeline can get chocked quite quickly. ( iii ) how is crowd funding going to impact lending business of the banks in future? the amount of funds raised by crowd funding platforms worldwide has increased progressively from $ 1. 5 bn in 2011 to $ 2. 7 bn in 2012 and further to $ 5. 1 bn in 2013. i hear some of you say it is negligible in volume. the pace of growth however, is quite fast and combined with bis central bankers ’ speeches the peer - to - peer lending business this could create disruptions, at least for some of the players who operate in the same segment. ( iv ) if mobile banking were to succeed, would plastic money still be needed? basically there are two questions rolled in one. first, whether mobile banking can succeed and if that is the case what implications would it have for the future of atms and the debit cards that have been issued by banks. there is justifiably a growing need for reducing the reliance placed on cash by the system and hence, if more and more people moved to mobile / internet based payments, the plastic cards and the investments made thus far, would be rendered useless unless put to more imaginative uses. ( v ) what ifrs implementation would mean for the banking system? ifrs accounting could potentially overstate assets or overstate capital position. the question is how prudential regulation would exist alongside ifrs? proposed impairment calculations under ifrs, accounting for interest income on effective interest rate basis and presence of multiple systems for operations and accounting of different portfolios would mean that it systems would have to be upgraded / realigned for ifrs migration. banks would also need to overcome challenges around converging policies for financial accounting and tax accounting for preparation of financial statements. the banks would need to train their staff in various departments like credit, and treasury, etc. for acquiring proficiency in ifrs accounting. ( vi ) would the large corporates continue to borrow from the banks? of late, the global markets, particularly the emerging market economies, have been flush with funds flowing in on account of variants of qes launched by the central banks in the advanced economies. many large corporate houses have been able to access

level, in respect of those enterprises which are purely in a commercial but competitive environment, the process of expansion, strengthening or disinvestment are essentially operational matters and hence best carried out by professionals with due regard to dynamics of the market and securities regulation. this should ensure that the total investment portfolio of the commercial enterprises of the government is managed efficiently reconciling commercial objectives and sound fiscal management. this in brief is the logic behind the proposed pmci. bypass and delivery of services the importance of fiscal adjustment at state level in enhancing the output and quality of services has been recognised. the popular perception of effect of reform and thus confidence in the economy appears to have been undermined by the deterioration in the quality of public services be it education or health or even drinking water. while a generation ago, most of these facilities were sought and provided in the government sector, today, a large part of some of these facilities is available only on commercial basis. consequently, many, especially the poor are deprived of reasonable or in any case equitable access to these services. in fact, even security of buildings is getting increasingly privatised in urban areas. in other words, there is a phenomenon of “ bypass " of these public services since the main arteries appear choked, on which enormous sums are spent by government. there is sometimes a tendency to spend energies in regulating the bypass activities for ostensible public purpose than on improving the quality of services in public domain. while superfluous regulatory aspects would be considered by the proposed zra, there is a need for assessing, on a continuous basis, the cost of inputs and the quantity as well as quality of output in regard to delivery of these public services. perhaps, it is possible to devise mechanisms under the aegis of the comptroller and auditor general to make such assessments on a continuing and scientific basis, by outsourcing as is being done in respect of commercial audit of public enterprises. indeed, the audit of delivery of such public services deserve far greater energies and attention than many other sectors. it is hoped that media and academia would join in such efforts to assess these sectors, which are critical to the nation ’ s well being. overhang issues it is necessary to make a distinction between what may be termed as “ flow ” issues and overhang issues. there is merit in insulating the overhang problem from flow issues and demonstrably solve the flow problem upfront. for example, in regard to food stocks there is addition to buffer