were contributing significantly to the last mile credit delivery, also got impacted as their funding sources got further squeezed. the reserve bank acted in a swift and proactive manner to improve access to funding and liquidity by its monetary policy and liquidity measures and resultantly, the cost of funds for nbfcs and hfcs has reduced substantially for all rating categories ( chart - 2 ). chart 2 : funding cost 3 - month commercial papers ( cp ) weighted average yield % yield july october january april july hfc source : rbi staff calculations october january nbfc - pvt. april july october 7. it is important to recognize that challenges faced by some of the nbfcs were reflective of inherent fragilities. as financial markets started differentiating between strong / well managed nbfcs and those having perceptible weaknesses, market discipline started to play out - entities with asset - liability mismatches or asset quality concerns faced constraints on market access. rbi, in response, took several calibrated steps to channel credit flow into the nbfc sector and improve the sector ’ s long - term resilience. 8. as the sector was slowly inching towards normalcy ( as can be seen from table - 1 below ), the outbreak of covid - 19 and disruptions in economic activity due to lockdowns led to building up of huge stress in the financial system. while the entire financial system was affected, the impact was significantly greater on nbfcs due to their underlying business models, thereby straining their profitability. table 1 : profitability of nbfc sector ( deposit taking and ndsi ) ( amount in rs. crore ) profitability parameters march 2017 march 2018 march 2019 march 2020 net profit ( rs. crore ) 31, 923 42, 434 17, 460 41, 257 annualised roa ( % ) 1. 5 1. 6 0. 6 1. 2 annualised roe ( % ) 6. 3 6. 8 2. 4 5. 1 data source - supervisory returns, rbi the regulatory approach 9. the regulatory approach of the reserve bank has adapted to the increase in complexity of the entities within the nbfc sector as well as the growing significance of nbfcs within the financial sector. the core principles of nbfcs regulation, however, has remained intact, i. e., - a ) protection of depositors ( in case of deposit - accepting companies ) and customers ; and, b ) preserving financial stability

usha thorat : milestones of bank note production in india welcome address by ms usha thorat, deputy governor of the reserve bank of india, and chairperson of the bharatiya reserve bank note mudran private limited ( brbnmpl ), at the foundation stone laying ceremony of the banknote paper mill, mysore, 22 march 2010. * * * 1. hon ’ ble finance minister, shri pranab mukherjee, governor. rbi, dr. subba rao, members of parliament, shri a. h. viswanath and shri dhruv narayana, members of karnataka legislative assembly, mayor of mysore shri purushotham, directors on the boards of brbnmpl and spmcil, distinguished guests and staff of the brbnmpl – a very warm welcome to all of you to this traditional city of mysore. 2. it is my proud privilege to welcome this distinguished gathering on this occasion of laying of the foundation stone for a banknote paper mill here in the premises of brbnmpl. it is even more significant that this project is being inaugurated in the platinum jubilee year of the reserve bank of india. on behalf of reserve bank of india, brbnmpl and spmcil, i warmly and respectfully welcome the hon ’ ble finance minister who has kindly accepted our invitation to lay the foundation stone for the banknote paper mill. sir, we are greatly honoured to have you here with us today. today is indeed a milestone event in the indigenization of the production of bank notes and your presence here is a source of enormous strength and encouragement in ensuring the fruition of this dream. our heartfelt thanks to you for having made it convenient to come. to us it reflects your commitment and support. we also recall with pride that it was during your tenure as finance minister in the mid 1980s that the proposal for the new note printing presses of rbi at mysore and salboni were approved. i may add that it is the first time any fm has visited the brbnmpl. 3. it gives me great pleasure to welcome governor, dr. subbarao, without whose guidance and support this project could not have been possible. i also extend a warm and cordial welcome to the members of parliament, the members of karnataka legislative assembly, the mayor of mysore, senior officials from government of india, karnataka government, directors of spmcil and brbnmpl, my colleagues from the reserve bank of india and the