of large financial entities if they become nonviable, necessity of cross - border cooperation for their orderly liquidation, strong capital base by banks and enforcing objective capital standards by supervisors. other country experiences showed the need for strengthening the legal and operative tools of deposit insurers, making banking resolution simulation exercises, and regular monitoring of systemic institutions. 6. according to some other presentations, deposit insurance should be the responsible resolution agency with financial accountability and core competencies. there should be contingency planning, collaboration of authorities, ex - post funding scheme, consumer awareness, recovery and resolution plans, faster payouts, and regulatory reforms. deposit insurer needs to have independence, quick responding ability, access to financial data, adequate funding, and legal protection. key attributes of resolution regime were identified that would help the deposit insurers to meet their objectives. concern was expressed on weakening of deposit insurance systems due to supervisory and regulatory lacunae, slow implementation of new measures, and apprehensions about increased moral hazards by governments. 7. fsb ’ s work on resolution stressed the need for deposit insurers to be well connected to all aspects of the resolution framework including information, tools, contingency planning etc. in the context of cross - border insolvency, there should be a multi - prong policy approach comprising increasing loss absorbency, strengthening the resolution regimes, market infrastructures and supervision. discussions also hovered around addressing systemic risks, changing role and future directions for deposit insurers, their design features and organizational issues with implications for expanded resolution role. finally, role of core principals was elaborated, along with assessment challenges. 8. the deliberations and discussions in this conference have been fruitful and have certainly provided food for thought for the policymakers. i will now give you a snapshot of india ’ s deposit insurance system, flag the issues in the context of the required further reforms and look at the way forward for the global deposit insurance systems. india ’ s deposit insurance system 9. in a country like india where there is a significant extent of financial exclusion and small depositors are worried about safety of their funds, deposit insurance is critical for financial inclusion and plays a role of a catalyst therein. deposit insurance also protects small depositors from strategic errors by management and wider systemic shocks. at the same time, other elements of financial safety net framework including financial regulation / supervision also work towards promoting financial inclusion. it is surprising that in india, there bis central bankers ’ speeches is

is vital to tailor borrowing to business cycles and avoid overleveraging. comparing terms across lenders and negotiating for better interest rates and repayment options can result in more favourable credit terms. further, building and maintaining a good credit score is fundamental for accessing formal financing. msmes should ensure timely repayment of loans and bills, which reflects positively on their credit history. it is also important to use the bank funds for the purposes for which it was borrowed. sometimes, however, it is noticed that working capital funds are diverted for other purposes. a few have been found to be not investing their equity fully or diverting funds borrowed from banks to purposes outside of their businesses. many a times, unplanned and improperly funded capacity or market expansions have become a major source of stress, impacting the credit history and thereby the credibility with their banks. all of these are eminently avoidable, doing business ethically and prudently helps overcome such short - sighted actions. capacity building thirdly, msmes must invest in capacity building to strengthen their operational and financial management skills. financial literacy programs help entrepreneurs understand credit appraisal processes, banking norms and government support measures, making them more confident borrowers. skill development workshops on topics like compliance, bookkeeping, and market trends equip them to better manage their businesses and finances. msmes can leverage the ecosystem for capacity building and financing. engaging with industry bodies and trade associations provides msmes with mentorship, funding opportunities, and market linkages. collaborating with incubators and accelerators can 3 / 5 bis - central bankers'speeches offer access to training, networking, and funding. additionally, fintech solutions that use alternative credit scoring based on sales patterns or supplier feedback can help msmes secure funding more effectively. fourthly, msmes should prioritise the use of treds which provides a platform to access working capital by discounting invoices raised to larger buyers. pursuing buyers to also onboard onto treds ensures smoother transaction processing and timely payments. by integrating treds into their operations, msmes can unlock liquidity, improve cash flows and build stronger trust with lenders. i understand that there are a few bankers also present amongst us today. while the rbi engages with the banking community separately, particularly under the standing advisory committee on msmes, i would like to take this opportunity to reinforce the importance of improving financing for msmes. bridging the credit gap is not merely about supporting the