{"id":148896,"date":"2021-11-25T20:30:37","date_gmt":"2021-11-25T15:00:37","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=148896"},"modified":"2021-11-25T20:30:37","modified_gmt":"2021-11-25T15:00:37","slug":"niti-aayog-releases-discussion-paper-on-digital-banks-seeking-comments","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/niti-aayog-releases-discussion-paper-on-digital-banks-seeking-comments\/","title":{"rendered":"NITI Aayog Releases Discussion Paper on Digital Banks Seeking Comments"},"content":{"rendered":"\n<h5><strong>What is the news?<\/strong><\/h5>\n<p>NITI Aayog has released a Discussion Paper titled \u201c<strong>Digital Banks:<\/strong><strong>A Proposal for Licensing &amp; Regulatory Regime for India<\/strong>\u201d.<\/p>\n<h5>About the Discussion paper<\/h5>\n<p>The Discussion Paper makes a case, and offers a template and roadmap, for a Digital Bank licensing and regulatory regime for India.<\/p>\n<p>The paper has been prepared by NITI Aayog, in consultation with eminent experts in the field of finance, technology and law and based on inter-ministerial consultations.<\/p>\n<h5><strong>What are the reforms proposed by the paper?<\/strong><\/h5>\n<p><strong>Digital Bank licensing:<\/strong> The paper proposed a Digital Bank license for solving as well as mitigating the financial challenges faced by India.<\/p>\n<p><strong>Digital Bank Regulatory Index<\/strong>: \u00a0Paper recommends constructing \u201cDigital Bank Regulatory Index\u201d comprising of 4 factors: <strong>Entry barriers; Competition; Business Restrictions and Technological Neutrality.<\/strong> It maps the elements of these indices against the 5 benchmark jurisdictions of Singapore, Hong Kong, the United Kingdom, Malaysia, Australia and South Korea.<\/p>\n<p><strong>Two-Stage Approach: <\/strong>It recommends a two-stage approach &#8211; a digital business bank license to begin with, followed by a Digital (Universal) Bank license after policymakers and regulators have gained experience from the former.<\/p>\n<p><strong>Inclusive Approach: <\/strong>It focuses on avoiding any regulatory or policy arbitrage and giving a level playing field to all the stakeholders.<\/p>\n<p><strong>Source<\/strong>: This post is based on the article &#8220;<strong> NITI Aayog Releases Discussion Paper on Digital Banks Seeking Comments&#8221; <\/strong>published in the <strong>PIB <\/strong>on <strong>24th November 2021.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>What is the news? NITI Aayog has released a Discussion Paper titled \u201cDigital Banks:A Proposal for Licensing &amp; Regulatory Regime for India\u201d. About the Discussion paper The Discussion Paper makes a case, and offers a template and roadmap, for a Digital Bank licensing and regulatory regime for India. The paper has been prepared by NITI&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/niti-aayog-releases-discussion-paper-on-digital-banks-seeking-comments\/\">Continue reading <span class=\"screen-reader-text\">NITI Aayog Releases Discussion Paper on Digital Banks Seeking Comments<\/span><\/a><\/p>\n","protected":false},"author":5480,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1566,3127,9],"tags":[],"class_list":["post-148896","post","type-post","status-publish","format-standard","hentry","category-daily-factly-articles","category-economy","category-public","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704908624},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/148896","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/5480"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=148896"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/148896\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=148896"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=148896"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=148896"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}