Context:
The Union Finance Ministry has directed public sector banks (PSBs) to accelerate physical branch expansion to compete with the aggressive network growth of private banks and small finance banks (SFBs), despite strong digital adoption.
Key Highlights:
- Branch Expansion Drive:
- PSBs were asked to identify high-potential locations and open more branches, especially in underserved and semi-urban/rural areas.
- The goal is to counterbalance the expansion by private banks and SFBs, and to enhance customer trust through a “phygital” model (physical + digital).
- Special Focus:
- Finance Ministry urged banking infrastructure expansion in the Northeast, where branch density is low.
