The concept of differentiated banks was first discussed in 2007; but it was felt that the time was not yet opportune for such banks. Thereafter, the concept was once again discussed in a Paper “Banking Structure in India – The Way Forward”, brought out by the Reserve Bank in August 2013.
The Paper looked into various aspects of the banking structure, licensing of banks, banking models and suggested a transition path for some banks. 12. In that Paper, we had noted that despite significant progress, one aspect of banking in India that required deeper analysis was the still inadequate coverage of the banking and financial sectors.