Regulatory framework needed to promote digital banking, NITI Aayog report

Digital Banking: NITI Aayog has said that there is no dearth of technology to facilitate digital banks in India. NITI Aayog, which is called the government’s think tank, has stressed the need to create a regulatory framework to promote it. NITI Aayog has said that India has the necessary technology to facilitate digital banks and there will be a need to create a regulatory framework to promote it.

The Commission in its report titled ‘Digital Banks: A Proposal for Licensing and Regulatory Regime for India’ has prepared a blueprint for the digital bank licensing and regulatory regime in the country. . It said that India’s public digital infrastructure has crossed $4000 billion in terms of transaction value through the ‘Unified Payment Interface’ (UPI). The report said, Aadhaar verification has crossed 55000 billion. India is finally ready to operate its own open banking structure. These indices show that India has the necessary technology to fully operate digital banks.

NITI Aayog Vice-Chairman Suman Berry said, this is the next stage of financial inclusion. On the other hand, Parameswaran Iyer, Chief Executive Officer of NITI Aayog said, the digital bank licensing and regulatory framework proposed by NITI Aayog in its report will be a major initiative towards digital future.

The commission’s report further said, “With the preparation of the blueprint for the digital banking regulatory framework and policy, India will have an opportunity to consolidate its position as a global leader in the fintech sector.” Along with this, the country will also be able to solve many challenges related to public policy.

The report has suggested bringing in limited digital business bank license and limited digital consumer bank license. Last year, NITI Aayog had issued a discussion paper titled ‘Digital Banks: A Proposal for Licensing and Regulatory Regime in India’ seeking comments on the same.

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