The support of policymakers, regulators, governments, IT solution providers and public at large would be essential to bring about a decisive metamorphosis in Indian banking and making it inclusive. 40. Finally, though Innovation is desirable, excess of the same could also mean higher cost and time overruns. It is important to strike a balance between no innovation and excess innovation.
The alternative view, which, it is fair to say, is more widely held, is that not to count equity above minimum requirements as GLAC would act as a disincentive for banks to hold or maintain higher than minimum equity buffers. From a risk perspective, higher equity buffers are unequivocally a good thing. Such a disincentive would therefore be unhelpful.