( bpl ). majority of these will be in this sub - continent and banks will have an opportunity to participate in this process, which will bring sustainable peace and prosperity to the mankind. for achieving the goal of financial inclusion, experts have recommended the business correspondent / facilitator ( bc / bf ) model. however, some recent studies have pointed out that the bc model at the initial stage, may not be commercially viable due to a high transaction cost for the banks and customers. here, the appropriate use of technology can help in reducing the transaction cost. the need of the hour is to develop and implement scalable platform independent technology solutions which, if implemented on a larger scale, will bring down the high cost of operation. technology, thus, really holds the key for financial inclusion to take place on an accelerated scale. the need of the hour is leveraging technology in indian banking for providing affordable and cost - effective banking services to the masses through multi - delivery channels. all of us know that apart from traditional business, banks nowadays provide a wide range of services to satisfy the financial and non - financial needs of all types of customers from the smallest account holder to the largest company and in some cases of non customers. the range of services offered differs from bank to bank depending mainly on the type and size of the bank. the key enabling factor has been the adoption of technology. banking industry is fast growing with the use of technology in the form of atms, on - line banking, telephone banking, mobile banking etc., plastic card is one of the banking products that cater to the needs of retail segment has seen its number grow in geometric progression in recent years. the internet banking is changing the banking industry and is having the major effects on banking relationship. retail banking in india is maturing with time ; several products, which further could be customized are in the retails segments of housing loan, personal loan, education loan, vehicle loan, etc. being convinced that technology is the key for improving in productivity, the reserve bank took several initiatives to popularize usage of technology by banks in india. periodically, almost once in five years since the early 1980s, the reserve bank appointed committees and working groups to deliberate on and recommend the appropriate use of technology by banks given the circumstances and the need. even as global financials face growth and asset - quality issues, indian banks continue to offer a healthy growth trajectory with minimal balance - sheet risks. despite the high growth rate of the past decade, penetration

k c chakrabarty : banking and finance in india – developments, issues and prospects inaugural address by dr k c chakrabarty, deputy governor of the reserve bank of india, at the 62nd international banking summer school ( ibss ), jointly organized by the indian institute of banking & finance and indian banks ’ association, new delhi, 31 august 2009. the assistance provided by dr. deba prasad rath and mr. sujit k arvind in preparation of the address is gratefully acknowledged. * * * mr. m. v. nair, chairman iba and chairman and managing director of union bank of india ; mr. bhaskaran, chief executive officer, indian institute of banking and finance ; representatives from ebtn, distinguished participants from different parts of the globe, invited guests, ladies and gentlemen : i am delighted to be here amidst all of you at the 62nd international banking summer school ( ibss ) being organised by the indian institute of banking and finance ( iibf ) jointly with the indian banks'association ( iba ). i am thankful to the organisers and sponsors for providing me an opportunity to share my views and interact with you at a forum which i personally rate very high. central bankers talk among themselves in various fora, it is high time that the bankers talk with each other. the school, open to senior bankers and financial professionals, as we are aware is a 10 days'brisk academic exercise that provides a platform for the practitioners of banking and finance to learn and share the latest developments in the banking and finance field, best practices and products available in today's fiercely competitive global banking arena. in the present situation of global turmoil that we have been going through in the last two years, this forum will provide opportunities to the bankers and finance professionals for understanding each other better. the exchange of views and the ideas which are going to be generated here during the next ten days will certainly throw useful insights and better understanding on how to overcome such problems in future which will be of great relevance in shaping the banking operations in future. i am saying so, as i am sure, in times to come, many of you are going to occupy high positions in banks and financial institutions including positions of chief executive officers ( ceos ). the takeaway from the school is, therefore, of great importance. considering the theme of ibss this year and more focus on managing banks in the era of turbulence, i think it would be appropriate if