The second tier is likely to comprise several mid-sized banking institutions including niche banks like Payment Banks with economy-wide presence. The third tier may encompass old private sector banks, Regional Rural Banks, and multi state Urban Cooperative Banks. The fourth tier may embrace many small privately owned local banks and cooperative banks.
2  From poverty to empowerment: India’s imperative for jobs, growth, and effective basic services, February 2014. 3  Banking Structure in India-The Way Forward, Discussion Paper, Reserve Bank of India, August 2013. BIS central bankers’ speeches  3  Competition 8.