The increase in the use of e-money in India in future could have far reaching effect on payments habit as also on the transmission mechanism of monetary policy. In order to examine these issues, the Reserve Bank of India had set-up a working group comprising officials from market participants and the Reserve Bank of India. The Chairman of the working group was Mr. Zarir J. Cama, Chief Executive Officer, Hongkong and Shanghai Banking Corporation. The working group submitted its Report on July 11, 2002.

The Report has been placed on the Reserve Bank of India website www.rbi.org.in The Reserve Bank of India would welcome comments on the issue from market participants at Monetary Policy Department, Reserve Bank of India, 24th Floor, Central Office, Mumbai.