Banking Sector in India

As of 2022, more than 80% of the Indian population has a bank account in comparison to 17% in 2009.

Advantage India

Robust
Demand

* According to the EY 2021 NextWave Global Consumer Banking Survey explored consumers’ primary financial relationships and found that FinTechs and neobanks are gaining ground.

* That demand seems particularly strong when it comes to the critical need of protecting consumer data, where incumbent banks have a trust advantage. Some super apps may also turn to banks for access to banking licenses and to meet other regulatory requirements.

* Indian Fintech industry is estimated to be at US$ 150 billion by 2025. India has the 3rd largest FinTech ecosystem globally.

* BCG predicts that the proportion of digital payments will grow to 65% by 2026.

Robust Demand Icon

Innovation in
Services

* In the recent period, technological innovations have led to marked improvements in efficiency, productivity, quality, inclusion and competitiveness in the extension of financial services, especially in the area of digital lending.

* Digitalization of Agri-finance was conceptualized jointly by the Reserve Bank and the Reserve Bank Innovation Hub (RBIH). This will enable delivery of Kisan Credit Card (KCC) loans in a fully digital and hassle-free manner.

* In Union Budget 2023, the KYC process will be streamlined by using a 'risk-based' strategy rather than a 'one size fits all' approach.

* In September 2023, Hitachi Payment Services launched India's first-ever UPI-ATM with NPCI.

Opportunities in MRO

Business
Fundamentals

* The Indian banking industry has been on an upward trajectory aided by strong economic growth, rising disposable incomes, increasing consumerism and easier access to credit.

* Digital modes of payments have grown by leaps and bounds over the last few years. As a result, conventional paper-based instruments such as cheques and demand drafts now constitute a negligible share in both the volume and value of payments.

Policy Support

Policy
Support

* The RBI has launched a pilot to digitalize KCC lending in a bid for efficiency, higher cost savings, and reduction of TAT. This is expected to transform the flow of credit in the rural economy.

* In November 2022, RBI launched a pilot project on central bank digital currency (CBDC).

* In Union Budget 2023, a national financial information registry would be constructed to serve as the central repository for financial and ancillary data.

* In March 2023, India Post Payments Bank (IPPB), in collaboration with Airtel, announced the launch of WhatsApp Banking Services for IPPB customers in Delhi.

Increasing Investments
Last updated: Feb, 2024

Posters

MORE
NEW INDIA DIGITAL INDIA

NEW INDIA DIGITAL INDIA

India will contribute 2.2% to the world's digital payments market by 2023, while the value of such transaction is expected to reach US$ 12.4 trillion globally by 2025.

IBEF Campaigns

MORE
Gulfood Dubai 2023

Gulfood Dubai 2023

APEDA India Pavilion Gulfood February 20th-26th, 2022 | World Trade Centre,...

India Organic Biofach 2022

India Organic Biofach 2022

Ibef Organic Indian Pavilion BIOFACH2022 July 26th-29th, 2022 | Nuremberg, ...

Case Studies

MORE

The Growth of Ayurveda in India

The Growth of Ayurveda in India

Ayurveda, an ancient health system originating from India, has a longstanding history. It revolves around using plants and herbs to maintain health an...

The Success of Digital India

The Success of Digital India

India's digital ecosystem has undergone an enormous change in recent years. The progressive integration of government services into digital platfo...

A Green, Sustainable Cotton: Kala Cotton

A Green, Sustainable Cotton: Kala Cotton

Kala Cotton is indigenous to India and one of the few “Old World” varieties that is still being cultivated on a large scale in India. Farm...

IBEF BLOG

MORE
Mission Net-Zero: A Strategic Plan for the Indian Chemical Sector
6 Mar 2024

Mission Net-Zero: A Strategic Plan for the Indian Chemical Sector

In recent years, the pursuit of net-zero emissions has garnered substantial...

Role of Third-Party Logistics Providers in Indian D2C.
6 Mar 2024

Role of Third-Party Logistics Providers in Indian D2C.

Role of Third-Party Logistics Providers in Indian D2C From the buzzing str...

Increasing the Competitiveness of India's Electronic Exports
6 Mar 2024

Increasing the Competitiveness of India's Electronic Exports

The electronic sector in India has emerged as a key driver of the country&#...

Partners
Loading...