December 2, 2014
The Reserve Bank of India (RBI), India’s central bank has always been known to be quite cautious in issuing banking licenses. But RBI is now propagating differentiated banking licenses, reflecting a new line of thinking. RBI had released guidelines for licensing and setting up of ‘Payments Banks’ in India. This has been done with the aim of reformatting India’s financial inclusion space. Payments Banks would help cover the unbanked and underbanked areas and increase banking penetration in the country.
In a nutshell: