. one factor influencing our choice of which topics to cover in the first phase was our assessment of what issues the market was looking for clarity on sooner rather than later. we have attempted to provide greater clarity on issues such as information sharing and order handling in the document released today. alongside drafting the code, we have also been devoting considerable time and effort to thinking about how to ensure widespread adoption of the global code by market participants. clearly, that has been an issue with the various existing codes that have been in place in a number of markets over many years. it is evident that they were ignored on occasion, wilfully or otherwise. as i said earlier, we are working with the industry to produce a principles - based code of conduct rather than a set of prescriptive regulatory standards. it will not impose legal or regulatory obligations on market participants, nor will it supplant existing regulatory standards or expectations. but we do expect the principles in the code to be understood and adopted across the entire fx market. so we are setting out today our overall approach to adherence to the code and we intend to work closely with market participants in the coming year to facilitate the development of market - based mechanisms which demonstrably embed the global code within firms ’ culture and practices. these mechanisms need to be sensitive to existing law and regulation and to the diverse nature of fx markets globally. hence a ‘ one size fits all ’ approach to adherence would not be appropriate. we need to strike the right balance between respecting the existing diversity across different markets, and establishing globally consistent and effective adherence mechanisms. the success of the global code in promoting integrity and restoring confidence in the wholesale fx market lies in the hands of its participants. that is why the global fxcs have issued today a joint statement of support making clear their intention for the global code to become an integral part of the wholesale fx market. furthermore the bis central banks are today signalling their commitment by announcing that they themselves will follow the code, and that they expect that their counterparties will do so too. bis central bankers ’ speeches

will have to be essentially emv chip and pin enabled. all the active magstripe international cards issued by banks should have threshold limit for international usage. banks have also been advised to frame rules based on the transaction pattern of the usage of cards by the customers in coordination with the bis central bankers ’ speeches authorized card payment networks for arresting fraud. to ensure greater security in electronic payments, banks have been advised to provide options to their customers for fixing a cap on the value / mode of transactions / beneficiaries and also limiting the number of beneficiaries that may be added in a day per account could be considered. banks should also put in place mechanism for velocity check on the number of transactions effected per day / per beneficiary and any suspicious operations should be subjected to alert within the bank and to the customer. given the low level of awareness amongst the frontline staff of the banks and customers, reserve bank has initiated a payment system literacy campaign – e - baat ( electronic banking and awareness training ). reserve bank is actively engaging the banks and payment system participants in raising the awareness of the various products and processes that our payment systems offer. i would expect that banks in kerala play an active role in popularizing the e - payments. 35. recently a technical committee ( chairman : shri. g. padmanabhan ) submitted a report on implementation of giro based payment system in india. bill payment, as you are aware, is a major component of the retail payment transactions and giro is expected to be a game - changer. it is estimated that over 30 billion bills are generated each year in the top 20 cities in the country. the cash and cheque collections constitute over 90 per cent and electronic payments through ecs, etc. continue to be low. giro is expected to address the needs of a consumer to pay the utility bills, school / university fee etc. the perceived benefits include interoperability in the bill payment processes thereby enabling consumers to make payments at any third bank / branch / atm / bc, a customer can do payment anytime anywhere at her will for any bill, customers can use cash, cheque or card or any other approved electronic mode for payment. with establishment of widespread network across the length and breadth of the country, giro will be a business model which perhaps no bank would like to miss. 36. let me also briefly provide you some insight on a recent discussion paper on “ disincentivising issuance and usage of che