Building a heterogeneous banking system
The Reserve Bank is striving towards a more competitive, efficient and heterogeneous
banking structure. It believes that a heterogeneous banking system can meet varied
customer needs in a more efficient manner. As different banks would operate differently
based on their reach, liquidity, capitalisation and market power considerations,
they will be able to offer a wider range of customer service enhancing consumer
welfare. Universal bank licensing policy and guidelines for small finance and payment
banks are a step in the direction of building a heterogeneous banking system.