The Reserve Bank of India (RBI) initiated a debate on re-orienting the banking structure in India to serve the needs of the economy better. RBI said more resources would be needed for supporting the growth process as the economy expands.
To support economic growth as envisaged in the 12th Five-Year Plan, RBI in its 'Discussion Paper on Banking Structure in India - The Way Forward' said the banking business needed to expand significantly to an estimated Rs 288 lakh crore by 2020 from about Rs 115 lakh crore in 2015.
The banking sector also needs to match-up to the likely acceleration in the credit to GDP ratio as the economy expands, according to RBI. "Notwithstanding the development of various types of banks, Indian banking sector is yet to meet the desired banking penetration and inclusion as witnessed in most advanced and some of the emerging economies," RBI said.
