these reforms are at different stages, the broader endeavour has been to achieve a greater degree of convergence in banking regulation across jurisdictions with a view to address the issue of regulatory arbitrage. a similar international effort is underway with regard to payment and settlement systems. as you are all aware, the one crucial segment of infrastructure which functioned effectively during the financial crisis was the payment and settlement system infrastructure. payment systems are the channels through which liquidity risks can get exacerbated and could very quickly turn into credit and systemic risks. in this sphere of payment systems, the measures taken by central banks the world - over in strengthening risk management in payment systems by introducing real time gross settlement systems and encouraging the private sector to set up cls bank for pvp transactions for settling foreign exchange transactions is indeed laudable. it was therefore found expedient in the wake of the financial crisis to revisit the existing three sets of standards which have guided the development of risk management standards in payment systems and securities settlement systems. together the two international - standard setting bodies in this area the committee on payment and settlement systems ( cpss ) and international organization of securities commissions ( iosco ) have published the “ principles for financial market infrastructures ” ( pfmi ) in april 2012. the pfmis replace the three existing sets of international standards set out in the core principles for systemically important payment systems ( cpss, 2001 ) ; the recommendations for securities settlement systems ( cpss - iosco, 2001 ) ; and the recommendations for central counterparties ( cpss - iosco, 2004 ). the cpss and iosco have strengthened and harmonized these three sets of standards by raising minimum requirements, broadening the scope of the standards to cover additional risk factors, and extending the scope to new types of fmis such as trade repositories. the 24 principles outlined in this report are categorized into nine broad categories : ( a ) general organization ( b ) credit and liquidity risk management ( c ) settlement ( d ) csds and exchange - of - value settlement systems ( e ) default management ( f ) general business and operational risk management ( g ) access ( h ) efficiency and ( i ) transparency. additionally cpss - iosco has released the ( i ) the cpss - iosco assessment methodology for the principles for fmis and the responsibilities for authorities and ( ii ) the cpss - iosco disclosure framework for fmis for public consultation with a 60 days comment period. the

introduction - genesis of the indian banking system the early 1980s were instrumental in the introduction of mechanisation and computerisation in indian banks. this was the period when banks as well as the rbi went very slow on mechanisation, carefully avoiding the use of “ computers ” to avoid resistance from employee unions. however, this was the critical period acting as the icebreaker, which led to the slow and steady move towards large scale technology adoption. over the years technological innovation in banking was meant to achieve a broader reach in terms of consumer banking and continued inclusive growth, to meet the demands of households and businesses, movement from “ class ” banking to “ mass ” banking and quick transmission of information inexpensively and conveniently. we have moved a long way from bis central bankers ’ speeches the age of mechanization in the indian banks to the present age where banks are successfully experimenting with disruptive technologies. perceived benefits of technology usage it was expected that technology adoption would enable the banking sector to be integrated with the global financial markets, adopt international best practices and ensure delivery of superior customer service. it was also envisaged to result in greater productivity, profitability, and efficiency ; faster service and customer satisfaction ; convenience and flexibility ; and space and cost savings. it was presumed that robust and reliable services would be delivered to their customers at a lower cost, as well as help banks to make better decisions. it usage was also expected to result in improving process integration and flexibility, decreasing operational exceptions that climb through the management hierarchy, thus, freeing up management time for decision making. but has this happened? have the banks been able to deliver what they were expected to deliver with adoption of technology? the answers to these questions are not very encouraging. often the inhibiting factors attributed to this would be poor strategic alignment between business and it strategy, absence of appropriate and re - engineered business processes and delivery models, lack of project ownership, poor risk management, ineffective resource management and missing governance principles. also the human resources in banks were drained as they have not done appropriate business process re - engineering before implementing it projects. further, the banks lacked in possessing business and it plans to leverage technology for increasing business and profits. last but not the least, banks have not used information for mis and decision support systems. complex role of the indian banker - manage financial inclusion and crm the role of the indian banker is very challenging. at one end of his spectrum lies the demand to achieve financial inclusion as nearly 50 % of the country