of support as well as prudence to ensure a healthy and sustainable growth. 4. against this backdrop, in my address today i would like to talk about our regulatory philosophy and approach to regulation and supervision of banks. i would argue that our regulations have been more forward - looking and when needed, more stringent than the internationally agreed standards. i would also briefly dwell upon our recent initiatives to strengthen the banking system in the country. but let me begin by talking about what is our regulatory philosophy? well, we have always operated with a conviction that the banking system is meant to sub serve the needs of the real economy and it should not race ahead of the real economy. our approach to regulation is also guided by the reality that the indian economy is bank - dominated and hence, banks are central to the process of credit intermediation and allocation of resources in the country. our regulatory guidelines also predicate on the belief that banks are a key agency for promoting financial inclusion and ensuring a sustainable development of the economy. 5. how have we fared as regulators? to put things in context, it would be in order to ruminate over some of the recent trends in regulation and supervision in the global financial sector and assess where we stand on those. among the ‘ add - ons ’ that are being employed as part of the regulatory reform package are stricter capital prescriptions, liquidity and leverage norms. measures have also been taken for a more intense oversight of the shadow banking sector, improving the risk management practices of ccps and regulation of otc derivatives. bis central bankers ’ speeches another important plank of the reforms has been to address the systemic vulnerabilities and ending the moral hazard associated with “ too big to fail ”. a total loss absorbing capacity ( tlac ) prescription and the resolution framework for g - sibs are at an advance stage of negotiation and are intended to precisely address this issue. 6. let me bring some perspectives. ever since the basel capital standards were first set out, we have sought to not only align our capital adequacy norms with these global standards, but pitched it at a more stringent level. likewise, since long, we have had prescriptions on maintenance of crr / slr by the banks in place which also serve more or less the same purpose as is now being sought to be addressed through lcr and nsfr regime, post crisis. leverage in the indian banking system has always been kept at a lower level and hence, the

which consists of market participants, experts and regulators. we have also had the benefit of an array of expert views, including those of the ministry of finance which were indeed valuable in giving final contours to the framework. the operational aspects were commendably dealt with by the rbi - sebi standing technical committee and i must highlight the exemplary inter - regulatory coordinative approach that has been the hallmark of the entire process. a similar approach is now being adopted in respect of interest rate futures as well and we may see a fruition of efforts in this regard in a short time. in this regard, i express deep appreciation of the contribution made by sebi, and in particularly the chairman, in bringing this to fruition. i congratulate nse for putting in place the platform in a short time and ensuring a sizeable number of members at the initial start itself. i believe the currency futures market will seamlessly complement the existing otc market. as you may be aware, in all countries, including developed markets, otc segment dominates foreign exchange transactions. the introduction of currency futures, i am sure, will provide further depth and breadth to the market and fulfill their intended objective as an effective risk management instrument. i would also like to take this opportunity to urge all the market participants to leverage this significant milestone for skill development within as well as at a broader industry level. on behalf of rbi, i would like to assure our continued commitment to orderly and well thought out development of financial markets, while maintaining financial stability and integrity.