, automating compliance processes through such tools, conducting risk assessments and monitoring transactions for potential violations could help sharpen compliance and ensure that financial institutions adhere to regulatory frameworks. this helps in reducing compliance costs for regulated entities, while improving the financial ecosystem as a whole. machine readable regulations could be an additional synthesis in the usage of ai. effective use of new technologies is expected to help to detect fraudulent actives in the system in a complex and interconnected environment. fifth, emerging technologies help central banks to design new products and services to cater to specific requirements. for instance, cbdc as a digital form of sovereign currency offers a secure and reliable medium of exchange. apart from enhancing financial inclusion and improving transaction efficiency, it may also help reduce costs and facilitate cross - border transactions. cross country experience 2 / 6 bis - central bankers'speeches central banks have been early adopters of emerging technologies. i will not attempt complete enumeration of central bank practices ; instead, present select experiences to underscore the wide diversity of usage. among advanced economy central banks, the european central bank ( ecb ) has been an early mover in applying these technologies to data collection, assessment and interpretation, and banking supervision. the us federal reserve is exploring the potential of generative ai through an'incubator'programmme with'responsible innovation'at the forefront of its strategy. the bank of england uses ai in the scrutiny of data quality to identify potential indicators of unforeseen economic disruptions. similarly, the deutsche bundesbank employs an unsupervised ml system to identify outliers in significant financial datasets. meanwhile, the banque de france's bizmap initiative leverages these advanced technologies to assist small - and medium - sized enterprises in france as they navigate global markets. many central banks, including the bank of canada, are implementing cloud adoption strategies for data analysis and collaboration which helps them in hassle - free upscaling of computing power3. among emerging market economies, the central bank of malaysia has developed a suptech tool that supports communication with supervised entities with the aim of enhancing both the efficiency of the process and the consistency of the messages conveyed. bank indonesia has been using news articles to enhance the forecasting of labour market dynamics. the approach involves building a statistical index of employment vulnerability computed from a corpus of around 27, 000 monthly news texts covering a period of 23 years and based on natural language processing ( nlp ) techniques

. non - bank entities are cooperating as well as competing with banks, either as technology service providers to banks or by directly providing retail electronic payment services. the regulatory framework has also encouraged this enhanced participation of non - bank entities in the payments domain. 5. in recent years, a focussed effort has been made to develop a state of the art national payments infrastructure and technology platforms, be it immediate payments service ( imps ), unified payments interface ( upi ), bharat interface for money ( bhim ), bharat bill pay system ( bbps ), or aadhaar - enabled payment system ( aeps ). this has changed the retail payments scenario of the country. the total volume of retail electronic payments witnessed about nine - fold increase over the last five years. 6. let me now mention some numbers with regard to digital modes of payment. the neft system handled 195 crore transactions valued at around rs. 172 lakh crore in 2017 – 18 growing by 4. 9 times in terms of volume and 5. 9 times in terms in terms of value over the previous five years. similarly, the number of transactions carried out through credit and debit cards in 2017 – 18 was 141 crore and 334 crore, respectively. prepaid payment instruments ( ppis ) recorded a 1 / 4 bis central bankers'speeches volume of about 346 crore transactions, valued at rs. 1. 4 lakh crore. thus, the total card payments, in volume terms, stood at 52 percent of the total retail payments during the year 2017 – 18. 7. developments in the spheres of banking technology and trade finance have been commendable as well. alternative models of lending and capital raising are coming up and have the potential to change the market dynamics of traditional lenders and the role of traditional intermediaries. crowd - funding, which entails raising external finance from a large group of investors, is at a very nascent stage in india. the peer - to - peer ( p2p ) lending for which rbi has issued master direction in october 2017 has the potential to improve access to finance for small and medium enterprises. eleven entities have been licensed to operate p2p platform. the reserve bank has also granted licenses and permitted seven purely digital loan companies ( nbfcs ) to commence operations. although they are purely digital players operating through mobile applications, we have ensured that they have at least one physical presence for customers to reach out to in case of need. 8. furthermore,