In India, all banks are subject to RBI’s regulation but the framework is not uniform in the sense that public sector banks, cooperative banks, and private banks are governed by significant differences and not all of them have access to the payments system. The RBI is a regulator of banks but is also the dominant owner of the largest commercial bank.
If, in addition, negative information on defaults is shared in a fair and responsible way through the financial network, every individual borrower will have something at stake – their credit history – which can serve to encourage timely repayment. This, in turn, can improve the willingness of banks to lend.