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With reference to the NITI Aayog Report on Digital Banks, consider the following statements:
1. It recommended the enlistment (of the licensee) in a regulatory sandbox framework enacted by the Reserve Bank of India.
2. It focuses on avoiding any regulatory or policy arbitrage and offers a level playing field to incumbents as well as competitors.
Which of the statements given above is/are correct?
  • a)
    1 only
  • b)
    2 only
  • c)
    Both 1 and 2
  • d)
    Neither 1 nor 2
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
With reference to the NITI Aayog Report on Digital Banks, consider the...
NITI Aayog Releases Report on Digital Banks.
  • NITI Aayog’s report makes a case and offers a template and roadmap for a licensing and regulatory regime for digital banks. It focuses on avoiding any regulatory or policy arbitrage and offers a level playing field to incumbents as well as competitors.
  • Recommendations: The report recommends a carefully calibrated approach, comprising the following steps -
    • Issue of a restricted digital bank licence (to a given applicant) (the license would be restricted in terms of volume/value of customers serviced and the like).
    • Enlistment (of the licensee) in a regulatory sandbox framework enacted by the Reserve Bank of India.
    • Issue of a ‘full-scale’ digital bank licence (contingent on satisfactory performance of the licensee in the regulatory sandbox, including salient, prudential and technological risk management).
Hence both statements are correct.
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With reference to the NITI Aayog Report on Digital Banks, consider the following statements:1. It recommended the enlistment (of the licensee) in a regulatory sandbox framework enacted by the Reserve Bank of India.2. It focuses on avoiding any regulatory or policy arbitrage and offers a level playing field to incumbents as well as competitors.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer?
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