41. Another criticism is that the Reserve Bank is too conservative in granting licences or registrations for payment systems and payment entities. It is said that this sector needs to be freed of licensing mechanism and once a set of criteria are fixed, any number of entities meeting those criteria should be allowed to function. We differ from this idea.
Such oversight enables us to identify the systemic risks and outliers in individual countries and individual markets and to counter them in some sections. Given such complex tasks in different countries, are we asking too much of the ECB?