Digital bank may start in the country, NITI Aayog has invited suggestions by December 31


Digital Bank to be launched Soon: Digital bank can be started in the country soon. NITI Aayog has proposed to create a digital bank and has issued a discussion paper regarding this. NITI Aayog has sought suggestions from all the people till December 31 regarding the discussion paper of the digital bank.

There will be no bank branch in Digital Bank

Under the digital bank, there will be no bank branch, but this bank will operate in a virtual way which will be completely technology based. NITI Aayog has mentioned this in a discussion paper titled ‘Digital Banks: A Proposal for Licensing and Regulatory Regime for India’. In this, the commission has discussed the roadmap for the licensing and regulatory regime of digital banks in the country.

In the discussion paper, digital banks have been defined as banks under the Banking Regulation Act, 1949. This discussion paper has been prepared by NITI Aayog after holding stalwarts in the field of finance, technology, law and inter-ministerial discussions.

Deposit in Digital Bank – Loan service too

According to the discussion paper, digital banks will also take deposits and give loans as well as provide all the banking services that have been mentioned in the Banking Regulation Act. It is clear from the name that the services of the digital bank will be based on the Internet. According to NITI Aayog, technology is fully available with India for digital banks. The blue-print of regulatory framework and policies for digital banking will help India consolidate its position as the global leader in FinTech.

The goal is to achieve financial inclusion

According to NITI Aayog, India has made great progress in achieving the goal of financial inclusion through the Pradhan Mantri Jan Dhan Yojana. However, the slow pace of credit expansion has always been challenging for policy makers, especially for the 6.30 crore MSMEs which contribute 30 per cent to the country’s GDP, 45 per cent in manufacturing and 40 per cent in exports. This is the sector that creates maximum employment.

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