The emerging priorities of India’s banking sector for 2025–2035 centre on strengthening deposit mobilisation to support rapid credit expansion, especially by deepening outreach in rural and semi-urban areas. Banks are shifting focus toward high-growth segments such as manufacturing, infrastructure, and renewable energy, while expanding green finance through sustainability-linked lending and support for technologies like Small Modular Reactors. Financial inclusion remains a core objective, with schemes such as PM MUDRA, PM Vishwakarma, PM Surya Ghar, PM Vidyalaxmi, and KCC enhancing grassroots access to credit. Agriculture lending is being redesigned under the PM Dhan Dhanya Yojana to boost productivity in low-performing districts. At the global level, banks are strengthening their presence through platforms like GIFT City and the India International Bullion Exchange. A parallel priority is improving customer experience through multilingual digital platforms and faster grievance redressal, reflecting a shift toward more technology-driven and citizen-centric banking.
Click to View MoreArtificial Intelligence (AI) is transforming the banking sector by enabling faster decision-making, improved customer experiences, and operational efficiency. However, it also introduces risks such as bias, model errors, data privacy issues, and regulatory challenges. AI auditing ensures these systems are ethical, transparent, and accountable throughout their lifecycle. Frameworks like RBI’s FREE-AI, along with global standards such as NIST AI RMF and CSA AICM, guide banks in implementing responsible AI. The way forward involves pragmatic guardrails, continuous monitoring, human oversight, and multi-stakeholder collaboration to balance innovation with risk, ensuring trustworthy and inclusive AI-driven banking.
Click to View MoreThe Reserve Bank of India has published the Financial Inclusion Index (FII) 2025, measuring progress in integrating everyone into the formal financial system. The index measures inclusion based on three pillars: Access (35%), Usage (45%), and Quality (20%). The index shows improvement in financial inclusion, largely due to increased usage and quality of financial services.
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