Full-stack ‘digital banks’

Full-stack ‘digital banks’

Part of: Prelims and GS-III- Economy 

Context NITI Aayog recently proposed setting up of full-stack ‘digital banks’.

• Such banks would principally rely on the Internet and other immediate channels to offer their services and not physical branches.
• The proposal was made to mitigate the financial deepening challenges being faced in the country.
• Such Digital banks will issue deposits, make loans and offer the full suite of services that the Banking Regulation Act empowers them to.