<h1>RBI to Boost Competition in India's Banking Sector with New Licenses and Governance Reforms for Public Banks.</h1> The talk highlights the evolving competitive landscape in India's banking sector, emphasizing the need for healthy competition to drive economic growth. It outlines two historical 'grand bargains' between the government and banks, which are now under pressure due to development and competition. The Reserve Bank of India (RBI) plans to increase competition by issuing more banking licenses and exploring differentiated licenses for niche banking services. Public sector banks face challenges in competing for talent and capital, necessitating governance reforms. The RBI aims to reduce regulatory burdens on banks, fostering a more competitive and varied banking environment to support sustainable economic growth.