to 1335. these data bring out the spurt in urban retail lending in recent time – but this has not been matched by similar growth in savings accounts in both rural and urban areas or growth in loan accounts in rural areas. on the other hand, there are 93 million mobile users today – the cagr since 1999 is 85 %. the number of mobile phones currently is more than the number of borrowers from the banking system. there is a clear need to increase the outreach and scale up operations at existing outlets. use of technology the use of it is inevitable to improve the usage of existing branch infrastructure. increasing outreach and up scaling number of accounts at each branch will require bankers to move out of their branches and source clients and then look at low cost delivery alternatives once the account relationship is established. opening a no frills account with a small overdraft or gcc is only the first step in building the relationship which would require sustained efforts to ensure that the banking relationship with the customer is fashioned to meet his needs. it can reduce cost and time in processing of applications, maintaining and reconciliation of accounts and enable banks to use their staff at branches for making that critical minimum effort in sustaining relationship especially with new accountholders. in rural areas customers cannot be expected to come to branches in view of opportunity cost and time and hence banks will have to reach out through a variety of devices such as weekly banking, mobile banking, satellite offices, rural atms and use of post offices. in urban and even in rural areas where mobile phones have penetrated, banks could use mobile technology for facilitating banking transactions. mobile phones can be used to transfer funds real time from and to bank accounts and could make remittances and payments at very low cost. once the data base and track record is established, a multitude of financial services can be offered including savings, remittance, transaction banking such as receipt of salaries, pensions and payments for utilities, loan including home loans, insurance and mf products. here the branches can render more business and variety of products to existing clientele as also source new customers within the area of operation. financial inclusion offers a huge potential for business in terms of resources and assets and banks therefore need to take aggressive steps to use technology, business processes and personnel to be able to exploit this potential in innovative and creative ways. in a branch banking model, local community based organizations or respected persons could be used to deal with the information asymmetry problem by leveraging the knowledge about customers

international standard - setters are not automatically legally binding in the united states. they do not go into effect unless they are adopted by a u. s. authority acting under u. s. laws following an administrative process. they are also subject to a period of public notice and comment. when appropriate, u. s. authorities have adopted different standards than those proposed in international forums. finally, following the financial crisis, the federal reserve developed a capital stress testing supervisory program — known as the comprehensive capital analysis and review ( ccar ). ccar has become an integral part of ensuring appropriate capital levels. by imposing a discipline of forward - looking capital assessment on our largest firms, ccar helps protect the safety and soundness of the largest financial institutions — and therefore the stability of the entire financial system. the ccar process consists of two parts. first, the quantitative assessment evaluates whether a firm holds a sufficiently large capital buffer so that it can continue to be a viable financial 3 / 6 bis central bankers'speeches intermediary even in a stressed market and macroeconomic environment. second, the qualitative assessment evaluates whether the firm ’ s risk management and capital planning processes are well - developed and well - governed. ccar has helped to strengthen the capital levels of the largest financial institutions, and has pushed these firms to steadily improve their risk management and capital planning processes. while appropriate capital and liquidity standards are necessary, they must be augmented by a supervisory regime that can assure the quality of a firm ’ s governance, controls, risk culture and compliance with applicable laws and regulations. as we saw with jpmorgan chase in the “ london whale ” episode and with wells fargo more recently, effective risk management and governance is a necessary complement to having adequate capital and liquidity buffers. resolution we also must have an effective resolution mechanism that allows a firm to fail without threatening to bring down the entire financial system. we are not quite there yet — given some of the challenges in executing resolution on a cross - border basis — but we have made significant progress. in particular, i would point to two developments that are especially important. the fdic and the federal reserve have used the authority provided by title i of the dodd - frank act to oversee the so - called “ living will ” process — the resolution planning that large financial firms must do as a contingency for their potential failure. developing living wills necessitates that firms and regulators consider, in advance, how bankruptcy can serve as