, and a number of alliances are now under way. let me broadly describe how we would like to see the payment system evolving. some desirable features of payments systems our regulations governing payments systems have to be ownership, institution, and technology neutral so that we encourage the most efficient outcomes. we are more open to experimentation at the early stages of a product or method of service, as will be clear in the soon - to - be - released peer - to - peer lending regulations. at the same time, we have to be more conscious of the risks to stability as innovations catch on and expand. this phased approach is now being called the sand - box approach elsewhere. second, we prefer payment platforms that offer broad based access, rather than those that limit access significantly. we would especially like critical channels to be publicly or widely owned rather than monopolised. bis central bankers ’ speeches third, we would like payment mechanisms to be cheap and scalable, so that they are suited to our economy where ticket sizes are small but transaction volumes huge. an additional desirable element would be for the different payment systems to be interoperable – or at least be able to talk to each other. fourth, we need systems that offer security even to the unsophisticated user, and do not place a huge burden of care on them. this requires greater emphasis on transaction monitoring and identification of suspicious patterns by the system operator, rather than an insistence on ever increasing levels of care by the unsophisticated user. and fifth, we need an effective process of consumer redressal that allows speedy and fair resolution of customer complaints. so long as customers adhere to a reasonable level of care, residual risks should be absorbed by the operator. some recent developments let me now describe some of what has been happening in payments and relate back to our desires. • various payment products and interfaces are now available – internet banking, cards, mobile banking, atms and micro atms, prepaid payment instruments including e - wallets and m - wallets. • remittance facilities through national electronic funds transfer system ( neft ), real time gross settlement system ( rtgs ), immediate payment system ( imps ), instant money transfer ( imt ), etc., most of which can be accessed through multiple channels including net banking, mobile banking, atms and business correspondents. • leveraging on the high mobile density in the country, mobile banking services are being encouraged through interoperable ussd channel

the tax hike. it thus appears likely that the year - on - year rate of change in the cpi will move steadily closer toward the bank ’ s “ price stability goal in the medium to long term ” for the time being of 1 percent. compared with the projections in the july interim assessment, these projections represent a downward revision. the reason for the downward revision is that the improvement in the aggregate supply and demand balance – reflecting the downward revision of the economic outlook – is expected to be delayed and that crude oil prices were corrected downward. nevertheless, despite the downward revision, the bank ’ s cpi projections are still higher than those of economists in the private sector. in my view, the difference between the bank ’ s projections and private sector economists ’ projections is due to differences in the extent to which prices are seen to respond to changes in the aggregate supply and demand balance. the projections by private sector economists tend to strongly reflect developments in the mid - 2000s, when prices failed bis central bankers ’ speeches to respond commensurately with the improvements in the aggregate balance. in fact, even though the economy registered moderate growth during this period, the inflation rate hardly picked up. this was a period when the excesses in production capacity remained unresolved, price competition among firms was even severer against the backdrop of subdued growth in the domestic market reflecting the aging of and decline in the population, and there was a substantial increase in cheap imports – from emerging economies such as china – that competed with domestic products. increases in goods prices were also constrained by efforts by firms to restrain wages against the backdrop of an increase in global competition. furthermore, property prices continued to decline at a rapid pace, and rents – which make up about 20 percent of the cpi components ( all items less fresh food ) – started to decline, keeping a lid on any upward pressure on overall cpi inflation. in contrast with that period, cheap imports from china today are not so conspicuous as to exert sizable downward price pressure and the resolution of excess production capacity, even if only at a gradual pace, is also making progress. moreover, it is increasingly possible to see cases where firms have succeeded in differentiating their goods and services in response to the aging of and decline in the population and customers are showing interest in high value - added goods with relatively high prices ; thus, there are forces that make it relatively easier for firms to raise prices. in addition, the declining trend in property prices has finally come to a halt and rents are expected