Regulatory framework needed for promoting digital banks: NITI Aayog report

Government think-tank Niti Aayog on Wednesday said India has a technology stack to facilitate digital banks and there is need for creating a regulatory framework for promoting this. The Aayog, in its report titled ‘Digital Banks: A Proposal for Licensing & Regulatory Regime for India’, makes a case and offers a template and roadmap for a digital bank licensing and regulatory regime for the country.

India’s public digital infrastructure, especially Unified Payments Interface (UPI) has successfully demonstrated how to challenge established incumbents, it said, adding that UPI transactions measured have surpassed Rs 4 trillion in value.