is already a reality. this underlines the need for standards to be evolved, based on international benchmarks, but adapted to the local requirements. such benchmarks could also be quite useful in securing compliance with the know your customer ( kyc ) and anti money laundering ( aml ) norms, monitoring of intricate cross - country financial flows as also the operational efficiency of each system in a country. let me now dwell a little on certain facets of effective payment and settlement systems. the introduction of the real time gross settlement ( rtgs ) system by many countries has not only resulted in compliance with the core principles for systemically important payment systems enumerated by the bis, basle but has also paved the way for risk - free, credit push - based fund transfers settled on a real time basis and in the central bank money. however, the liquidity requirements for the rtgs are relatively high. hence, the options are being weighed as to whether the liquidity requirements can be tackled by the banks in a cost - effective manner without losing the benefits of the rtgs. a judicious mix of netting coupled with the rtgs, or a guaranteed net settlement are some of the measures which would obviate the risks involved in the deferred net settlement systems ( dns ). while the rtgs holds great promise, it is possible that the technological as well as institutional aspects may result in considerable problems during the phase of transition. our experience with rtgs shows that there are immense benefits but its popularity itself can give rise to some operational issues when the system is stabilising. recently, delays in closing the books by the end of the day have been reported. i am informed that several experts are working on the system to resolve the problems. we are according highest priority to tackle these operational issues that have cropped up in the recent past. i take this opportunity to endorse what shri narayana murthy, chairman and chief mentor, infosys said while speaking at this forum. he said : " according to the rbi, there are about 48, 000 public sector bank branches in the country, of which over 63 per cent are in semi - urban and rural areas. though over 70 per cent of the branches have attained 100 per cent computerisation, real time gross settlement ( rtgs ) is available only in 23, 500, while the national electronic funds transfer covers less than 5, 000 branches. hence, integrating semiurban and rural areas into the electronic

these include : the appointment of a chief operating officer, enhancing the communications function, encouraging the culture of debate within the bank, strengthening the role of research, and continuing to invest in leadership and management capabilities. these recommendations make sense and have our support. we will now develop an implementation plan under the leadership of a small team of experienced people. to conclude, i would like to again thank the review panel for their work. it is not often that central banks are reviewed, so it is important the job is done well and thoughtfully, and that the process is constructive. this is exactly what has been done here. it also 2 / 3 bis - central bankers'speeches makes sense, as the panel recommends, for regular reviews to be conducted every five years. as the panel notes, the review has been about strengthening a well - functioning institution and ensuring the bank is in a good position to meet the challenges of the future. monetary policy has become more complex, as have the bank's operations in the banking and payments areas. the recommended changes in this review will help us do our job in this changing world and are consistent with our internal staff values, including serving the public interest and achieving excellence. i look forward to working with the government, the parliament, the board and the bank's staff on how we can best live up to those important values. i am happy to answer your questions. 3 / 3 bis - central bankers'speeches