To increase growth in banking sector, competition among banks and for peoples’ financial inclusion in the country, the Reserve Bank of India (RBI) has proposed a comprehensive overhaul of the countryÂ’s banking structure. Presently, only a universal banking structure is allowed, in the sense there is no separate licencing for niche activities as in developed nations.
The RBI, in a discussion paper titled ‘Banking structure in India — the way forward’ has provided a roadmap for the re-orientation of the banking.
Accordingly, it proposed a four-tier structure, with the first-tier of three to four large banks, with sizable international presence, while the second tier is likely to comprise several mid-sized banking institutions, including niche banks with economy-wide presence.
Leave a Reply
You must be logged in to post a comment.