Financial challenges will be less with the advent of digital banks: NITI Aayog

As the name suggests digital banks will primarily rely on internet and other related options to offer their services.

The Commission has proposed this in a discussion paper titled ‘Proposal on Licensing and Regulatory System for Digital Bank India’ for this.

NITI Aayog has launched Digital Bank (D)igital Bank) has been proposed on Wednesday. This bank will mainly rely on internet and other related options rather than physical branches. According to the news of the Times of India, NITI Aayog believes that this will help in reducing financial challenges. For this, the commission has called ‘Digital Bank (D)igital BankThis proposal has been made in a discussion paper titled ‘Proposals on Licensing and Regulatory System for India’. Also a digital bank for the country (Digital Bank) has provided a template and roadmap for the licensing and regulatory regime i.e. its outline has been presented.

The letter states that a digital bank is exactly as defined in the Banking Regulation Act, 1949 (BR Act), it states that in other words these institutions will receive deposits, give loans and all those services which is provided in the Banking Regulation Act. As the name suggests digital banks will primarily rely on internet and other related options to offer their services.

Bank’s work made easy in digital way

According to the discussion paper, India’s public digital infrastructure especially UPI (Unified Payments Interface) has proved how digital means can make bank work easier and easier and also increase access. Transactions through UPI (Unified Payment Interface) have crossed Rs 4 lakh crore in terms of value. At the same time, Aadhaar verification has crossed 55 lakh crores.

What did NITI Aayog CEO Amitabh Kant say?

NITI Aayog CEO Amitabh Kant said in his proposal that this discussion paper has looked at the global scenario, and on the basis of that it has been recommended to set up digital banks as regulated entities. Amitabh Kant said that the paper will be given a final shape based on the comments received and will share it as a policy recommendation.

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