cultivation of responsible use of credits and the other the introduction of new financial products and channels of distribution. while the former can improve the overall risk profile of financial institutions ’ retail portfolio, and thus lower the lending rates, the latter can potentially stimulate more demands and lower the cost of service provision. it is therefore the responsibility of lending institutions to convey clearly the message of ‘ no free lunch ’. in other words, prudent lenders must ensure that borrowers are fully aware of the financial obligation of their debt burdens and legal consequence of default. failure of either party could tarnish the healthy usage of retail credit. mindful of the importance of consumer protection, the bank of thailand already issued a regulation requiring financial institutions to disclose information, especially on effective interest rate and fee charged, financial position and operating results, so that customers can make well - informed decisions. additionally, financial institutions will be required to have in place clear procedures for handling customer complaints. on a system - wide scale, the authorities will introduce a deposit insurance scheme in place of the existing blanket guarantee to ensure protection of retail consumers. 3. supervisory concerns and challenges i have already touched on regulators ’ concerns that directly affect consumer benefits. now allow me to go through the concerns and challenges of retail banking from a wider perspective. first, we are concerned for those considering jumping onto the booming retail credit bandwagon without having sufficient skills and resources to capitalize on the key drivers of this market segment. second, the risks inherent in credit extension, which have to be adequately monitored and managed. third, the one that directly concerns us, regulators, - how to achieve a balanced objective of financial institution stability and fostering development, competition and level playing field. drivers of retail banking business the gaps of financial services provided by financial institutions in thailand reflect untapped opportunities in the retail sector awaiting those having the capability to fill in these gaps. the opportunities are open to banks with the right business models for the identified niche markets. however, it takes more than that to be successful in this competitive segment - banks must be capable of accurately charging the right price commensurate to the risk profiles of customers and their own operating cost. to this end, it is important that banks know their pool of customers in this sector, as well as have in place an efficient network of service distribution and able team of staff to achieve extensive outreach and operation efficiency. adequate oversight of various risks the profitability of banks hinges on their ability to manage various risks arising

existence of a national identity system in the country. 8. a few words about indian approach to fi. we have always been alive to the need for extending the reach of the financial sector to the under - privileged sections of the society. financial inclusion for us aims not merely at remittances but also aims at savings product, a loan / credit product, remittance product as also insurance product. thus, in india we believe that, financial inclusion has the potential to bring in the unbanked masses into the formal banking system, could lead to increased savings, provide timely credit to the unbanked masses and all these positive externalities would lead to economic growth. the efforts to channelize the government benefits and subsidies through direct benefit transfers programs to beneficiaries ’ bank accounts directly would not only be helpful in plugging the leaks in distribution but also help in inculcating banking habits. 9. how has india approached fi? we have adopted a structured, planned and an integrated approach towards fi by focusing on both the demand and supply side constraints. we have permitted non - bank entities to partner with banks for their fi initiatives. the technological advancement has made it possible for us to think of novel and innovative ways to approach the objective of financial inclusion. for example, handheld devices, used by bank agents to draw people living in remote areas into the banking fold. mobile technologies are trying to reach out to the populace starved of banking services as well. financial institutions are also joining forces with network operators in providing access to mobile based payment services even to those who do not have bank accounts. 10. let me give you some statistics on our financial inclusion initiatives : 4 bcg - swift “ global payments 2013 – getting business models execution right ”, september 2013 ; and bill & milinda gates foundation “ fighting poverty profitably – transforming the economics of payments to build sustainable, inclusive financial systems ”, september 2013. cgap “ financial access 2012 ”, july 2013. financial inclusion in india – journey so far and way forward ” – speech by dr. k. c. chakrabarty, deputy governor of the reserve bank of india, at the finance inclusion conclave, organised by cnbc tv 18, new delhi, 6 september 2013. bis central bankers ’ speeches • nearly 268, 000 banking outlets have been set up in villages as on march 13 as against 67, 694 banking outlets in villages in march 2010 • about 7400 rural branches opened during this period • nearly 109 million