It was also agreed to explore the possibility of extending the scope of the relative RBI circular addressed to the banks, to the financial institutions also so that they too would undertake due diligence and proper appraisal in financing of projects rather than merely relying on the State Government guarantees in their favour.
Free of legacy risk and designed specifically for a digital and interconnected world, these new banks can offer their services more cheaply and are more attractive to customers – they are quick, innovative and state-of-the-art. But the sector could change even more radically, as scenario three – the “fragmented” bank – shows.