"A payment regulatory board has already been set up within RBI which also held its first meeting. We are advising Indian Banks Association and other banks to come forward to set up a payment corporation," Y V Reddy, RBI Governor said at the Institute of Insurance and Risk Management in Hyderabad on Wednesday.

It would help speedy and hassle-free cheque clearance, among other aspects, he added.  Earlier, while interacting with students of IIRM, Reddy said the role of RBI was fast changing from that of a controller to a regulator.

"There has been a transition from control regime to role of a regulator and manager," he said.

Expressing satisfaction about the current state of credit markets, the RBI Governor said the liquidity adjustment facility, which is being monitored once in a day by RBI - can be changed if need arises.

"We are even prepared to monitor the market twice or thrice a day," Reddy said. Responding to a question on full convertibility of Rupee, Reddy expressed satisfaction about the current regime.

Insurance Regulatory and Development Authority of India Chairman C A Rao said a model should be worked out for expanding bankassurance in the country.