developments globally regarding features and functionalities. therefore it was decided to replace the application to a higher level by using the latest technology and redefined business requirements. report of the working group on information security, electronic banking, technology risk management and cyber frauds the above report examined various issues arising out of the use of information technology in banks and made its recommendations in nine broad areas i. e. it governance, information security, is audit, it operations, it services outsourcing, cyber fraud, business continuity planning, customer awareness programmes and legal aspects. the objective of this report is to serve as a common minimum standard for all banks to adopt as well as lay down the best practices for banks for a safer and sounder banking environment. the final guidelines in the respective areas as mentioned above have been issued to banks for implementation. keeping the customer ’ s perspective in mind, banks would need to ensure that they implement solutions that exploit the latest available technology to build their applications / solutions to ensure customer ’ s delight as also proliferation of banking services ; albeit the cost of providing adequate security. having said this, i would caution the banks that unless they keep them simple, they run a risk of losing their customer base to their competitors. it is also imperative that redundancy or alternate service delivery channels are available to the customer. we need to give a thought about this and provide workable systems at the earliest if we have to retain the customer within the fold of the banking system. developments in it have also brought along a whole set of challenges to deal with. these include rapid changes in technology, complexities, high costs, security and data privacy issues, new laws and regulations and inadequate trained manpower. there is a need to enhance the governance of it and institute robust information security measures in the banking sector based on extant international standards and best practices. given the instances of cyber fraud in banks recently, it is necessary to improve controls and examine bis central bankers ’ speeches the need for pro - active fraud risk assessments and management processes in commercial banks. banks must also work towards ensuring dissemination of the it security policy and procedures and related parameters amongst all operative functionaries of banks. summary how can banks achieve enhanced customer profitability? a bank can take the first step, which is to consolidate and streamline customer segment data. with accurate, segmented, easy - to - access data, analysis tools can be used to develop strategies and models, determine appropriate sales channels, calculate value measures, and set targets to advance the

feedback loops between the global and the domestic economy, on the one hand, and between the financial and real sectors, on the other, have bis central bankers ’ speeches become more complex. in this context, it has become difficult to make reasonable impact assessment of macro - policies. moreover, the capability of standard models in the armoury of central banks in predicting growth and inflation is being questioned. primary assumptions of basic dsge models have come under attack both from policymakers and academia. there is, therefore, a need to revisit the modelling strategy in the light of the increased uncertainty, leverage and global linkages. it is important to harness appropriate statistical tools to capture the underlying dynamics of economic - financial framework. ladies and gentlemen, we are fortunate to have amidst us luminaries who are not only accomplished statisticians but some of them are at the helm of statistical administration. i am confident that the deliberations today will not only guide us in setting our statistical agenda in the reserve bank but also will go a long way in strengthening the indian statistical system, for which prof. mahalonobis worked tirelessly. i once again extend a hearty welcome to all our speakers and all our invitees, and look forward to the intellectual fare ahead. thank you. bis central bankers ’ speeches