Besides, the financial inclusion efforts have already transcended to a business correspondent led model leveraging on technology. At a broader level, for enabling a reasonable level playing field, there would have to be a gradual convergence in terms of the operating space and flexibility available to each class of entity.
In terms of regulatory and prudential norms governing the Public and Private Sector banking operations, there is already a significant amount of convergence. Therefore, from prudential perspective, the debate is infructuous. However, the same level of convergence would have to be extended to managerial and operational flexibility of PSBs based on certain governance standards.