Differentiated licensing •  In October 2007, Reserve Bank prepared a Discussion Paper on Differentiated Bank Licensing which said that the case for differentiated licensing will be reviewed after a certain degree of success in financial inclusion is achieved and the Reserve Bank is satisfied with the quality and robustness of the risk management systems of the entire banking sector.
•  Time to reevaluate this issue of Differentiated Licensing? Arguments in support of differentiated licensing •  Specialized entities have expertise in risk assessment and structuring of infrastructure finance. •  Core competency could be better harnessed leading to enhanced productivity in terms of reduced intermediation cost, better price discovery and improved allocative efficiency.