Report titled “Digital Banks” released by NITI Aayog

Sakshi Education

The “Digital Banks” paper from NITI Aayog presents a rationale for a licencing and regulatory framework for digital banks as well as a template and a path for implementing it. It focuses on preventing any regulatory or policy arbitrage and provides both incumbents and challengers with an even playing field. The report was released by SumanBery, CEO of NITI Aayog, ParameswaranIyer, Senior Advisor Anna Roy.
The PradhanMantri Jan DhanYojana and India Stack have recently propelled India’s rapid advancements in financial inclusion.
Credit penetration, however, continues to be a policy concern, particularly for the country’s 63 million or more MSMEs that contribute 30% to GDP, 45% to manufacturing output, 40% to exports, and provide employment for a sizeable portion of the population.
Financial inclusion has become a reality for Indians over the past several years because to digitization, which was brought about by the Jan Dan-Aadhar-Mobile (JAM) trinity and Aadhaar.
The Unified Payments Interface (UPI), which has seen unprecedented acceptance, has only served to reinforce this. In October 2021, UPI counted more than 4.2 billion transactions totaling 7.7 trillion.
The platform strategy the government used when designing UPI has led to the development of worthwhile payment products on top of it.
Because of this, payments can now be made with a click both at retail locations and peer to peer, radically altering how money is transmitted between people.

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