Argument against differentiated licensing •  Given the extent of financial exclusion in India, is it advisable to create a regime where some banks are freed of the obligation of financial inclusion? •  A universal bank will be able to cross subsidise across sectors to optimize utilization of resources and ensure better profitability of banks.
Entering 2016 market developments have taken a further turn for the worse. Concerns about growth and financial stability in China came back to the fore in early January 2016 that struck global investor risk appetite. 6.