expanding remunerative savings vehicles, or on providing easy - to - obtain insurance against crop failures. in the emerging financial inclusion paradigm, the government and the rbi are trying to expand inclusion by encouraging these other products, allowing credit to follow them rather than lead. indeed, many successful organisations working with the poorest of the poor try to get them to put aside some money as savings, no matter how little, before giving them loans. some of our self - help groups ( shgs ) work on this principle. not only does the savings habit, once inculcated, allow the customer to handle the burden of repayment better, it may also lead to better credit allocation. easy payments and cash out will make formal savings more attractive. today, a villager who puts money into a bank has to either trudge the “ last miles ” to the bank branch to take out her money, or wait for an itinerant banking correspondent to come by. we are engaged in strengthening the network of banking correspondents ; by creating a registry of banking correspondents, giving them the ability to take and give cash on behalf of any bank through the aadhaar enabled payment system ( which will also give them adequate remuneration ), and requiring that they are adequately trained in providing financial services. cash - in - cashout points will expand soon as the postal payment bank and telecom affiliated payment banks make post offices and telephone kiosks entry points into the financial system. perhaps most interestingly, transfers from bank account to bank account will become easier in a few bis central bankers ’ speeches weeks via mobile through the unified payment interface. a villager needing to pay a shopkeeper only needs to know the latter ’ s alias – say ram @ xyzbank. psp. he feeds that into his mobile app, writes the payment amount, puts in his password, and presses “ send ” and the payment is made, with both getting messages to that effect. neither needs to visit the bank to take out or deposit money, no point of sale machine is needed. with the price of smartphones falling sharply, we are on the verge of solving the last mile problem. with the power of information technology, perhaps the analysis of the savings and payment patterns of a client can indicate which one of them is ready to use credit well. small businesses, which use the services of an on - line internet platform to sell, can establish a verifiable record of revenues that can form the basis for

of associating myself with the willard group of the bank for international settlements ( bis ) constituted by g 10 countries to look into these aspects. the group has come out with recommendations which call for close coordination amongst central banks and governments of the world, as well as the international financial institutions like the imf and world bank, in promoting stability, accountability and transparency in the financial systems. adoption of core principles and uniform accounting standards the core principles for effective banking supervision ( 1997 ) evolved by the basle committee on banking supervision ( bcbs ) have been accepted for adoption by the rbi. the core principles seek to promote and enhance the standards of supervision. incidentally, i may add that the international accounting standards committee ( iasc ) is also working closely with the bcbs on reducing differences in supervisory approaches to loan valuation and credit loss provisioning. in many areas of banking supervision and securities regulation, international consensus has been reached and principles or standards have been established. in other areas there still is a need to define best practices and develop standards. the lack of international consensus on sound practices for loan valuation, loan - loss provisioning and credit risk disclosure seriously impairs the ability of market analysts as well as regulators to understand and assess the risk inherent in a financial institution ’ s activities. supervision of non bank financial institutions i would like to specifically mention the far - reaching supervisory initiatives on the part of the rbi which has now brought all indian development finance institutions and non banking financial companies under an intensive supervisory framework through both on - site inspection and off - site monitoring procedures. development finance institutions the rbi set up an exclusive supervisory division in august 1990 for monitoring the operations of select all indian development financial institutions ( fis ). currently, 12 such fis are being monitored. of them, the term lending and refinance institutions, viz. industrial development bank of india ( idbi ), industrial credit & investment corporation of india ltd. ( icici ), industrial finance corporation of india ltd. ( ifci ), industrial investment bank of india ltd. ( iibi ), exim bank, tourism finance corporation of india ltd. ( tfci ), national bank for agriculture and rural development ( nabard ), national housing bank ( nhb ) and small industries development bank of india ( sidbi ) are also subject to the on - site supervision process of the rbi. prudential norms relating to income recognition, asset classification, provisioning and capital adequacy have also been prescribed, for