Money and banking

Indian Economic System(CSC) Combined State Civil Services

Title

45:30

8 of 24 completed

5 of 15 completed

38 of 100 completed

8 of 20 completed

Indian Economy - Understanding the basics of Indian economic system

With reference to the NITI Aayog Report on Digital Banks, consider the following statements

It recommended the enlistment (of the licensee) in a regulatory sandbox framework enacted by the Reserve Bank of India.
It focuses on avoiding any regulatory or policy arbitrage and offers a level playing field to incumbents as well as competitors.

Select the correct statement.

1 only

2 only

Both

None

NITI Aayog Releases Report on Digital Banks.

NITI Aayog’s report makes a case and offers a template and roadmap for a licensing and regulatory regime for digital banks. It 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 license would be restricted in terms of volume/value of customers serviced and the like).
Enlistment (of the licensee) 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 licensee in the regulatory sandbox, including salient, prudential and technological risk management).

Hence both statements are correct.

By: Shubham Tiwari