Among others, the Committee suggested licensing of Payments Bank and wholesale banks as differentiated banks. 15. The Nachiket Mor committee opined that in the Indian context it would be important to have the regulatory flexibility to approach payments, savings, and credit independently (the Vertically Differentiated Banking Design) and to bring them together when the efficiency gains are high and the other costs are low.
The 3-month CD rate has continued at around 0.50 - 0.55 per cent except for the fiscal year-end. The long-term government bond yield has been declining since summer 1996, and has recently moved at a low level of 2.1 - 2.2 per cent.