We need to have an open mind on the subject and look at it as an opportunity to bring customer-centricity to our regulation. The role regulators presently have in product design and pricing is minimal. The advent of market conduct regulation would mean greater role and responsibility of the regulator in design and pricing issues.
This sort of an intervention may force the banks to focus more on appropriateness of selling strategies and product development. The pricing freedom conferred on banks will continue to be in place but would be ring-fenced with a lot of responsibility towards the consumers. 30. In the Indian context, we additionally have the twin challenges of financial inclusion and financial education.