In my view, purely national initiatives will not improve the stability of the financial system, quite the opposite. It is all the more important that the EU implements the Basel standards. The rules should be harmonised as far as possible for Europe’s banking market. And this brings us to the second question: how “European” must regulation in Europe be?
Within three months of the introduction of the RTGS, the system has been able to settle almost 90% of the inter-bank funds transfer, which were being earlier routed through the net-settlement based inter-bank clearing at Mumbai.