Increase public confidence: The establishment of such body will increase public confidence in the functioning of the financial market and channelize the household saving in the financial sector.
Focus on core areas: The idea is that the central bank (RBI) should be responsible for monetary policy and prudential regulation and need not necessarily be bothered about other aspects.
Improve discipline: The bill will also inculcate discipline among financial service provider and thereby limit the use of public money to bail out distressed entities.
