Without the license, it should not be allowed to undertake banking activities. This for example, is what RBI did recently when it clarified that PPIs (Prepaid Payment Instruments) cannot be funded out of credit lines, because it enabled an entity to undertake a licenced business without a licence. That regulation clearly established the principle of 'same activity, same regulation'. 9.
History has proven the Danish mortgage-credit system to be a good system that has facilitated considerable product development. The annual meeting of the Association of Danish Mortgage Banks is a good occasion for listing some of the qualities of the Danish system. Thanks to the legal framework, including loan limits and the balance principle, it is a very safe system.