this discussion. this requires meaningful engagement on the key issues such as : • how can different national policies, including exchange rate regimes, be made to coexist within the international system? • what are the respective responsibilities of the various nations to foster that compatibility? • what is the proper role for the imf and other supra - national bodies, not just as occasional lenders to individual nations, but as custodians of the international system all the time? the recent “ review ” of the “ 1977 exchange rate decision ” by the imf is a start on this discussion. it revises an agreed set of words from 30 years ago to form a more up - to - date basis for guidance to imf members about exchange rate policies, and provides a framework for surveillance by the imf membership of those policies. this is a good start, but only a start. the key will be the way the surveillance is actually implemented. that is in the hands not just of the imf ’ s staff and management but also its membership. the membership from this region will need to be ready to play its part. by this i mean that the countries of asia will need to be ready to defend their policies robustly, but also to work with others in understanding and mitigating unintended consequences of their policy choices. asian countries should, of course, expect the same from other regions. it is worth adding that, in other fora, asian countries have a potentially strong voice if they can coalesce. in the g - 20, for example, china, india, indonesia, japan and korea are all at the table, as is australia. if that group of countries could speak in a united way on issues of key mutual interest, it would be a powerful force in a globally significant group. it is not easy to find a common position, of course, and it will not be possible on some issues. we need only to look to europe – a continent that has been working at this for a long time – to see how national differences frequently limit collective regional influence. but to the extent that asian countries can agree on some things, they have the potential to be quite influential. conclusion recent events are putting financial systems to the test around the world. for years people have worried about the so - called “ global imbalances ” leading to trouble because asian investors might refuse to buy dollars. others have feared some sort of repeat of the 1997style “ sudden stop ”

reserve bank in the recent past. occasionally, feedback surfaces from the sector suggesting that in our process of re - orientation, certain limitations specific to the ucb sector might be inadvertently disregarded. however, i would like to clarify that this perception does not accurately reflect the reality of our efforts. it may be appreciated that the reserve bank has attempted to adopt a more holistic approach towards addressing the growing complexities and inter - connectedness, and to deal effectively with the potential systemic risks. there has been a significant strengthening of the reserve bank's supervisory systems, transitioning from an entitybased approach to a more thematic and activity - based approach. structural improvements have been implemented to enhance agility, flexibility, and specialisation. a unified and harmonised supervisory approach has been adopted for commercial banks, nbfcs, and ucbs, with a greater focus on identifying the root causes of vulnerabilities. at times our supervisory medicines may taste bitter. however, prevention is always better than cure. i would like to assure you that the rbi has the best interests of the sector in mind, consistent with the duty cast upon it to safeguard the interests of depositors while fostering a resilient, sound, and stable financial system that contributes to the nation's development. in conclusion, i would like to emphasise that the synergistic benefits stemming from the convergence of the cooperative movement and banking as embedded within the ucb framework can only be realised with sound governance and professional management. when guided by strong governance, ucbs can foster financial inclusion, ultimately contributing to the well - being of both the community and the institution itself. the efforts we invest today in fortifying the ucb sector will not only shield these institutions but will also serve as a bulwark against potential threats and risks to the financial sector. by 4 / 5 bis - central bankers'speeches cultivating a culture of prudence and foresight, we can ensure that the ucbs continue to thrive as pillars of trust, contributing to a robust and secure financial future for our country. i hope that the interactions today result in better understanding of the challenges and facilitates concerted solutions in the interest of the co - operative sector. we shall continue to engage in meaningful interactions with the sector even beyond this conference. thank you. 1 " genesis and architecture of urban cooperative banks ", december 7, 1999, reserve bank of india, https : / / www. rbi. org. in / scripts / publicationreport