for bank and credit card transactions are a welcome advance relative to even the united states, where thieves find it easy to bill thousands of dollars to your credit card even before you know it is stolen. all this means that we have the infrastructure to provide cheap and safe payments and remittances. what we need are non - governmental players to utilize this infrastructure to provide the products and access that people want. a lot is already happening. real - time funds transfer through the immediate payment service ( imps ) put in place by npci has contributed significantly towards growth of mobile banking. the aadhaar payment bridge system ( apbs ) allows government benefits to be transferred through the use of unique identification number given to the citizens. but we are still not where we should be either on mobile payments or on direct benefit transfers. bis central bankers ’ speeches with over 900 million mobile phones, the potential for mobile banking as a delivery channel for financial services is a big opportunity in india. we have consciously adopted the bank led model for mobile banking, while the non - banks, including mobile network operators, have been permitted to issue mobile wallets, where cash withdrawal is not permitted as of now. the key to cheap and universal payments and remittances will be if we can find a safe way to allow funds to be freely transferred between bank accounts and mobile wallets, as well as cashed out of mobile wallets, through a much larger and ubiquitous network of business correspondents. the nachiket mor committee suggests the creation of payment banks as a step towards this goal. other suggestions include interoperable business correspondents who will get the scale economies to serve in remote locations, and the usage of nbfcs as banking correspondents. we will examine all this. in the meantime, interesting solutions are emerging. cashing out is important for remittances, because we have a large recipient population in the country, most of whom do not have access to formal banking services. we have recently approved the in - principle setting up of a payment system which will facilitate the funds transfer from bank account holders to those without accounts through atms. essentially, the sender can have the money withdrawn from his account through an atm transaction. the intermediary processes the payment, and sends a code to the recipient on his mobile that allows him to withdraw the money from any nearby bank ’ s atm. the system will take care of necessary safeguards of customer identification, transaction validation, velocity checks etc

ministry as the members to iron out regulatory gaps and overlaps. to minimise settlement risks in the money, government securities and forex markets, the clearing corporation of india ltd ( ccil ) was established in 2002. acting as a central counterparty through novation, the ccil provides guaranteed settlement, thereby limiting the problem of gridlock of settlements. a board for regulation and supervision of payment and settlement systems ( bpss ) has also been recently constituted to prescribe policies relating to oversight of the financial infrastructure relating to payment and settlement systems. finally, to address the systemic risks arising from growth of financial conglomerates, the rbi has put in place an oversight framework which envisages periodic sharing of information among the concerned regulatory bodies. seventh, the legal environment for conducting banking business has also been strengthened. debt recovery tribunals were introduced early into the reforms process exclusively for adjudication of delinquent loans in respect of banks. more recently, an act to enforce securities and recover loans was enacted in 2003 to enhance protection of lenders rights. to combat the menace of crime - related money, the prevention of money laundering act was enacted in 2003 to provide the enabling legal framework. the credit information companies ( regulation ) act, 2004 has recently been enacted by the parliament which is expected to enhance the quality of credit decision making. the government is considering several major legal amendments to enhance the powers of the rbi. major changes relate to removal of the restrictions on voting rights in banks, providing legal basis for consolidated supervision, removal of the floor of 25 per cent in respect of statutory liquidity ratio and empowering the rbi to supercede the board of a banking company. eighth, the reforms have focused on adopting appropriate processes in order to ensure development of various segments of the markets. in the banking sector, the indian banks'association ( iba ) has emerged as an important self - regulatory body working for the growth of a healthy and forward - looking banking and financial services industry. in the debt market segment, the rbi interacts closely with fixed income money market dealers association of india ( fimmda ) and the primary dealers association of india ( pdai ) for overall improvement of government debt markets and promoting sound market practices. with regard to the payments system infrastructure, the introduction of the real time gross settlement ( rtgs ) system since 2004 has made it possible for large value payments to be transacted in a faster, efficient and secure manner. in order to enhance transparency of secondary market trades in government