and leverage on these improvements. with the formation of fmos, the monetary award limit for eligible disputes that can be handled by fmos was increased and streamlined to a maximum of rm250, 000, from rm10, 000 for disputes concerning motor third - party property damage, and rm25, 000 for disputes concerning unauthorised transactions. the streamlined monetary limit of rm250, 000 for all disputes is also consistent with the existing monetary award limit for disputes in the capital market, thereby enabling more financial consumers to use the alternative dispute resolution service offered by fmos. as financial products and services evolve and become increasingly complex, it will be vital for fmos to ensure that its team is equipped with the necessary skills, knowledge and expertise to perform its expected role with a high level of professional competence and integrity. sometimes, cases will call for creative solutions to deliver fair outcomes to disputing parties. to this end, we require and expect financial service providers to cooperate fully with fmos towards achieving swift and fair resolutions. this includes promptly providing all necessary information and documentation to fmos to facilitate its thorough review of cases and actively engaging with fmos to explore solutions that deliver fair outcomes for consumers. 2 / 3 bis - central bankers'speeches in rising to meet the expanded scope and higher expectations of it, fmos will have to contend with a fast - changing environment, and be able to navigate the terrain between legal and fairness considerations in specific cases. in addition, one of its most important roles will be the ability to provide crucial and timely feedback to the regulators on systemic issues and poor practices to prompt early regulatory responses that can prevent future harm to consumers. the bank also remains committed to work closely with fmos to continuously improve on monitoring and regulatory feedback systems to inform our interventions. this includes using insights from cases handled by fmos to identify areas where consumer education needs to be intensified to empower consumers to protect themselves against financial and misconduct risks. building trust in financial institutions has become more challenging with time, and yet never more important to build resilient communities. while trust in an individual financial institution can be fragile when consumers have a bad experience with an institution, fmos plays a critical role to ensure the public can still continue to have confidence in a financial system that will fairly protect individual and small business consumers. we have every confidence that fmos is well - positioned to live up to these expectations. on that note, let me end my remarks by congratulating the board and staff

2006. the feedback received on the guidelines is being examined by the internal group and the draft guidelines are in the process of finalisation. ( iii ) draft guidelines on stress testing risk management practices in banks in india have undergone considerable improvement over the past few years with the introduction of the financial sector liberalization process in the mid nineties. the process gained momentum with the issue of regulatory guidelines and guidance notes on asset liability management and management of credit risk, market risk and operational risk by the reserve bank since 1999. further, the announcement of implementation of the revised capital adequacy framework in india with effect from march 31, 2007 has brought the risk management capabilities of banks into greater focus. globally, banks are increasingly relying on statistical models to measure and manage the financial risks to which they are exposed. these models are gaining credibility because they provide a framework for identifying, analyzing, measuring, communicating and managing these risks. since models cannot incorporate all possible risk outcomes and generally are not capable of capturing “ event risks ” and sudden / dramatic changes, banks need to supplement models with “ stress tests ”. internationally, stress testing has become an integral part of banks ’ risk management systems and is used to evaluate the potential vulnerability to certain unlikely but plausible events or movements in financial variables. there are broadly two categories of stress tests used in banks viz. sensitivity tests and scenario tests. these may be used either separately or in conjunction with each other. banks in india are beginning to use statistical models to measure and manage risks. further, the supervisory review process under pillar 2 of basel ii framework is intended not only to ensure that banks have adequate capital to support all the risks in their business, but also to encourage banks to develop and use better risk management techniques in monitoring and managing their risks. banks must demonstrate, under the internal capital adequacy assessment process prescribed by pillar 2, that they have enough capital to not only meet the minimum capital requirements but also to withstand a range of severe but plausible shocks. in the above background, the need for banks in india to adopt “ stress tests ” as a risk management tool is being emphasised by rbi. ( iv ) basel ii the reserve bank and the commercial banks have been preparing to implement basel ii. the reserve bank had earlier intended in june 2005 that by march 31, 2007 all commercial banks would comply with basel ii. however, taking into account the state of preparedness of the banking system, it was decided in october 2006 to provide banks some more time to put