reach a comfortable level of inflation. the weak state of the economy, as well as the good kharif and rabi harvest, will generate disinflationary forces that will help, and we await data to see how these forces are playing out. no single data point or number will determine our next move. i think the market understands what we are trying to do. but we do need a more carefully spelled out monetary policy framework than we have currently. action on the framework will follow the submission of the dr. urjit patel committee report, which is expected to submit its report by end december 2013. second, we have already announced measures to free bank branching, and to incentivise foreign banks to incorporate domestically. going forward, we have to give our public sector banks, which are a national asset, the means to improve their competitiveness. many of them have made enormous strides in the last decade – for instance, the extent to which they have digitised their operations is extremely praiseworthy – but because competition in the banking sector is likely to increase in the next few years, they cannot rest on their laurels. in the coming months, we will discuss with stakeholders in public sector banks about what needs to be done to further improve their stability, efficiency and productivity. third, we need to enlist markets in the aid of banking. liquid markets will help banks offload risks they should not bear, such as interest rate or exchange risk. they will also allow banks to sell assets that they have no comparative advantage in holding, such as long term loans to completed infrastructure projects, which are better held by infrastructure funds, pension funds, and insurance companies. liquid markets will help promoters raise equity which is sorely needed in the indian economy to absorb the risks that banks otherwise end up absorbing. rather than seeing markets as being inimical to the development of the banking sector, we have to see them as complementary – of course, this requires you bankers to build on your risk management capabilities so that you can use markets effectively. in the coming weeks, we will roll out more recommendations of the gandhi committee report to improve the liquidity and depth of the g - sec market. we will then turn to money markets and corporate debt markets. we will introduce new variants of interest rate futures and products like inflation indexed certificates, and work to improve liquidity in derivative markets. fourth, we have to reach everyone, however remote or small, with financial services. financial inclusion does not just mean credit

course, it is important that this industry, which is important to the economy ’ s development, is sustainable, transparent and adequately regulated. the series of drafted laws has passed the first reading in the state duma, and now there is serious work to be done in preparing them for the second reading. the most important of these is the introduction of a unified system for evaluating business reputation, management qualification requirements and requirements for the founders and owners of non - bank financial institutions. such requirements are already defined in the banking system, and it ’ s very important to increase the responsibility of the owners and management of financial organisations for their sustainability and good governance, and in our opinion it is very important to bring in similar norms for non - banking organisations too. another draft law currently in the duma, and now particularly important, aims to improve the effectivity of regulation in the fight with insider trading and market manipulation. at the moment our legislation lags behind global practices. we understand what an urgent topic this is, and in order to make our economy more attractive to investors there should of course be effective mechanisms in place to counter insider trading and market manipulation. the next important issue is the bill concerning a financial ombudsman for the rights of consumers of financial services. recently at the state council presidium there was discussion about rights protection for consumers of financial services, and, of course, a financial ombudsman could be one of the instruments used to increase the effectivity of consumers ’ rights protection. we propose to bring this in gradually. and here, too, i hope i can count on support for this project from the ministry of finance and the government and state duma as a whole. these bills are in the process of being finalised before submission to the state duma. firstly, for us it is important that a bill toughens liability for false statements in the financial sector. we are carrying out major work on improving the cyber resilience of financial organisations and combatting cyber attacks. so it is important for us, taking into account the benefits of digital technology development for the financial sphere, to provide an adequate level of security and protection from risks. therefore it is necessary to amend the law in order to establish legal requirements for the protection of financial organisations ’ information and to combat theft of their clients ’ funds. we are now working on drafting this bill, too. and also worthy of note is our work, together with the ministry of finance, on the initiative for the pension savings