RBI Proposes Wholesale and Long-Term Finance Banks

After having issued licences for new-age payments and small finance banks, the Reserve Bank of India (RBI) has now published a discussion paper on the need for Wholesale and Long-term Finance Bank (WLTFB).

What is a Wholesale & Long-term Finance Bank?

• The wholesale and long-term finance banks will focus primarily on lending to infrastructure sector and small, medium and corporate businesses. They will also mobilise liquidity for banks and financial institutions directly originating priority sector assets, through securitisation of such assets and actively dealing in them as market makers.
• They may also act as market-makers in securities, such as, corporate bonds, ....