The banks which could be differentiated on the accountof capital requirement, scope of activities and servethe needs of a certain demographic segment of thepopulation are called as Differentiated Banks or NicheBanks.The idea of Differentiated Bank was mooted byNachiket More Committee 2014, for FinancialInclusion. It can be classified as Payment Banks, SmallFinance Banks, Regional Rural Banks, Local AreaBanks Wholesale and Long-Term Finance (WLTF)banks etc.Wholesale and long-term finance banks focusedprimarily on lending to infrastructure sector andsmall, medium and corporate businesses.
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