🔆 Digital Banks – A proposal for Licensing and Regulatory Regime for India

♻️ Details :

✅ Government think tank NITI Aayog has made a case and offered a template and roadmap for a licensing and regulatory regime for digital banks.

✅ The report focuses on avoiding any regulatory or policy arbitrage and offers a level playing field to incumbents as well as competitors.

♻️ Recommendations :

✅ The report recommends a carefully calibrated approach, comprising the following steps :

🔸 Issue of a restricted digital bank licence (to a given applicant) (the licence would be restricted in terms of volume/value of customer serviced and the like).

🔸 Enlistment (of the Licence) in a regulatory sandbox framework enacted by the Reserve Bank of India.

🔸 Issue of a “full scale” digital bank licence (contingent on satisfactory performance of the licence in the regulatory sandbox, including salient, prudential and technological risk management).

✅ The methodology for the licensing and regulatory template offered by the report is based on four factors such as entry barriers, competition, business restrictions and technological neutrality.

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✅Privatization Of Banks

Big-bang privatization of public sector banks can do more harm than good, the latest RBI bulletin has warned, asking the government to take a nuanced approach to the issue.

While private sector banks (PSBs) are more efficient in profit maximization, their public sector counterparts have done better in promoting financial inclusion, they said in the article.

The gradual approach to privatization adopted by the government could ensure that a void was not created in fulfilling the social objective of financial inclusion and monetary transmission.

Promoting green transition: PSBs had played a key role in catalyzing financial investments in low-carbon industries.

Evidence suggested that public sector banks were not entirely guided by the profit maximization goal alone and have integrated the desirable financial inclusion goals into their objective function unlike private sector banks, the report said

✅Consolidation of the sector has created robust and competitive banks.

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#must read

: #Agriculture data

✅Helful for Essay

✅Manual Scavenging  a serious challenge for Human lives 

🫥Supporting Data facts for ESSAY


🍀Various policy initiatives

✅Prohibition of Employment as Manual Scavengers and their Rehabilitation (Amendment) Bill, 2020: It proposes to completely mechanise sewer cleaning, introduce ways for ‘on-site’ protection and provide compensation to manual scavengers in case of sewer deaths.

✅Prohibition of Employment as Manual Scavengers and their Rehabilitation Act, 2013: Superseding the 1993 Act, the 2013 Act goes beyond prohibitions on dry latrines, and outlaws all manual excrement cleaning of insanitary latrines, open drains, or pits.

✅Rashtriya Garima Abhiyan: It started national wide march “Maila Mukti Yatra” for total eradication of manual scavenging from 30th November 2012 from Bhopal.

✅Prevention of Atrocities Act: In 1989, the Prevention of Atrocities Act became an integrated guard for sanitation workers since majority of the manual scavengers belonged to the Scheduled Caste.

✅Compensation: As per the Prohibition of Employment of Manual Scavengers and their Rehabilitation (PEMSR) Act, 2013 and the Supreme Court’s decision in the Safai Karamchari Andolan vs Union of India case, a compensation of Rs 10 lakh is awarded to the victims family.

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