globally integrating financial system. standardizing and harmonizing reporting norms will help to bring about global comparability, which, in turn, will help national regulators identify the vulnerabilities of their systems and take necessary steps to prevent the precipitation of a crisis. however, while this is a desirable objective, the process of convergence is itself resource and knowledge intensive. cross - border comparability will remain a problem as different countries converge gradually to the global standards. even after it happens, mechanisms that ensure the full dissemination of information need to be instituted or strengthened to derive the full benefits of comparability. finally, on the issue of inclusion, this is clearly an objective at the core of the larger development agenda. it is not easy, even for people within the system, to appreciate the sheer scale of the challenge. it is not just a question of numbers. the imperative is to provide financial access to several hundred million people in widely differing local environments in terms of levels of affluence, economic structures and means of livelihood, risks emanating from both natural and man - made sources and infrastructure conditions. this requires a deep understanding of the local terrain and the organizational ability to find cost - effective ways to cater to the requirements of financial services in each terrain. there are, of course, some universal or replicable components, which are either already in play or will become so shortly. saturation coverage by the telecommunication network allows the use of low - cost wireless handheld devices to actually play the role of a bank branch, significantly reducing the cost of expansion. the impending introduction of the unique identification number will significantly improve the efficiency of the kyc process as well as allowing full mobility across the networks of individual banks. but, given the overall scale of the challenge, as well as its regional diversity, properly visualizing the role of different participants and coordinating their activities will be of critical importance. and all this will have to be done with full consideration of cost - effectiveness, commercial viability and, of course, the implications of any strategy for financial stability. in short, robust development of our financial sector in a manner consistent with the larger goals of economic development needs to balance these four principles. it needs to exploit complementarities and manage tradeoffs. let me list three current areas of activity, which reflect this overall approach. first, the process of issuing new banking licenses has begun, with the articulation of core issues and the pros and cons associated with ownership and capital criteria.

a public debate and consultation process is now under way. second, an effort to co - ordinate action on the remaining barriers to the development of the bond market is in motion. a very important motivation for this is the sharp rise in infrastructure spending and the need to ensure that this is not hindered by financial constraints. third, a process of consultation with individual banks with the objective of developing realistic financial inclusion plans is going on. i will conclude by highlighting three balancing acts that our financial sector development strategy needs to perform : 1. between the drivers of financial sector growth and the requirements of the larger growth and development agenda 2. between the benefits and risks of greater global integration 3. between the advantages of scale and the compulsions of diversity i trust that these thoughts will be a useful input into the discussions that follow and i thank the organizers of this panel for the opportunity to share them with you.