【印度品牌价值基金会(IBEF)】英文2024年印度银行业报告

BANKING

November2024

Forupdatedinformation,pleasevisit

TableofContents

ExecutiveSummary3

AdvantageIndia4

MarketOverview6

RecentTrendsandStrategies13

GrowthDriversandOpportunities21

KeyIndustryContacts31

Appendix33

2

Executivesummary

HigherATMpenetration

•TheIndianManagedServicesandOutsourcingindustryhasbeenplayingakeyroleinfasterexpansionofATMnetworktoachievethelastmilefinancialinclusion.

•AsofJune2024,thetotalnumberofmicro-ATMsinIndiareached15,17,580.Moreover,thereare1,26,772on-siteATMsandCashRecyclingMachines(CRMs)and90,142off-siteATMsandCRMs.

•WiththeincreasedpenetrationofATMsthroughoutsourcingmodel,customersalsofinditmoreconvenienttotransactatATMsdeployedclosertotheirworkorresidentialareasratherthangoingtodistantlylocatedbankbranches.

Growingdigitaltransaction

•InOctober2024,India’sUnifiedPaymentsInterface(UPI)reachedarecordhighwith16.58billiontransactionsworthapproximatelyRs.23.5trillion(US$279.4billion),markingthehighestmonthlyfiguressinceitslaunchin2016.

•ImmediatePaymentServices(IMPS)transactionsroseby9%to467million,withavalueincreaseof11%toapproximatelyRs.6.29trillion(US$74.7billion),andFASTagtransactionsgrewby8%inbothvolume(345million)andvalue,reachingaroundRs.6,115crore(US$733million).TheAadhaarEnabledPaymentSystem(AePS)recorded126milliontransactions,up26%involumeand35%invalue,totalingapproximatelyRs.32,493crore(US$3.88billion),reflectingstronggrowthacrossvariousdigitalpaymentmethods.

Risingruralpenetration

•InUnionbudget2024-25,announcementmadetoopen100branchesofIndiaPostPaymentBankaresettobeestablishedintheNortheastregiontoenhancebankingservices.

•TheRBIhaslaunchedapilottodigitalizeKCClendinginabidforefficiency,highercostsavings,andreductionofTAT.Thisisexpectedtotransformtheflowofcreditintheruraleconomy.

•100%ofnewbankaccountopeningsinruralIndiaarebeingdonedigitally.

•AccordingtotheBostonConsultingGroup,PhonePehas47%ofUPImarketsharefollowedbyGooglePay(at34%)inFY23(April-December).Financialtransactionsviadigitalchannelsaccountedfor92%oftheoveralltransactions.Outofwhich,thetotalshareofUPItransactionswas42%in9MFY23.

•InNovember2022,RBIlaunchedapilotprojectoncentralbankdigitalcurrency(CBDC).TheplatformiscalledNDS-OMCBDC.TheCentralBankstatedthattheusecaseforthewholesaledigitalrupeeisforthe"settlementofsecondarymarkettransactionsingovernmentsecurities“asitwouldreducetransactioncosts.

Notes:ATM-AutomatedTellerMachine,FIP-FinancialInclusionPlan,RBI-ReserveBankofIndia

Source:IndiaBankingAssociation,ReserveBankofIndia,BostonConsultingGroup,

3

AdvantageIndia

4

AdvantageIndia

4Innovationinservices

1Robustdemand

►BCGpredictsthattheproportionofdigitalpaymentsinIndiawillgrowto65%by2026.

►Demandseemsparticularlystrongwhenitcomestothecriticalneedofprotectingconsumerdata,whereincumbentbankshaveatrustadvantage.Somesuperappsmayalsoturntobanksforaccesstobankinglicensesandtomeetotherregulatoryrequirements.

►IndianFintechindustrycurrentlyisUS$111billionandestimatedtobeatUS$421billionby2029.

Indiahasthe3rdlargestFinTech

ecosystemglobally.

2Businessfundamentals

►Digitalmodesofpaymentshavegrownbyleapsandboundsoverthelastfewyears.Asaresult,conventionalpaper-basedinstrumentssuchaschequesanddemanddraftsnowconstituteanegligibleshareinbothvolumeandvalueofpayments.AsonJuly2024,therewere602banksactivelyusingUPI.ThetotalnumberofdigitaltransactionsduringDecemberamountedto15.08billion,withatotalvalueofRs.2.1trillion(US$25.27billion).

1

2

4

ADVANTAGEINDIA

3

►Intherecentperiod,technologicalinnovationshaveledtomarkedimprovementsinefficiency,productivity,quality.

►InUnionBudget2023,theKYCprocesswillbestreamlinedbyusinga'risk-based'strategyratherthana'onesizefitsall'approach.

►InSeptember2023,HitachiPaymentServiceslaunchedIndia'sfirst-everUPI-ATMwithNPCI.

►DigitalizationofAgri-financewasconceptualizedjointlybytheReserveBankandtheReserveBankInnovationHub(RBIH).

3Policysupport

►In

UnionBudget2023,anationalfinancialinformation

registrywouldbeconstructedtoserveasthecentralrepositoryforfinancialandancillarydata.

►InNovember2022,RBIlaunchedapilotprojectoncentralbankdigitalcurrency(CBDC).

►InMarch2023,IndiaPostPaymentsBank(IPPB),incollaborationwithAirtel,announcedthelaunchofWhatsAppBankingServicesforIPPBcustomersinDelhi.

Source:IBAreporttitled“Beingfive-starinproductivity-RoadmapforexcellenceinIndianbanking,EYConsumerBankingSurvey,RBIDocuments

5

MarketOverview

6

EvolutionoftheIndianbankingsector

1921

1935

Closedmarket.

State-owned

ImperialBankofIndiawastheonlybankexisting.

RBIwas

establishedasthecentralbankofcountry.

Quasicentral

bankingroleofImperialBank

cametoanend.

Note:RBI-ReserveBankofIndia

Source:IndianBank’sAssociation,BMI

1936-1955

ImperialBankexpandedits

networkto480branches.

Inordertoincreasepenetrationinruralareas,Imperial

BankwasconvertedintoStateBankof

India.

1956-2000

Nationalisationof14largecommercial

banksin1969&sixmorebanksin1980.

EntryofprivateplayerssuchasICICIintensifyingthecompetition.

GradualtechnologyupgradationinPSUbanks.

2000-2020

In2003,KotakMahindraFinance

LtdreceivedabankinglicensefromRBIand

becamethefirstNBFCtobe

convertedintoabank.

In2009,theGovernment

removedthe

BankingCash

TransactionTax

whichwas

introducedin2005.

2020

onwards

Intherecentperiod,

technologicalinnovations

haveledtomarked

improvementsinefficiency,

productivity,quality,inclusionandcompetitivenessin

extensionoffinancial

services,especiallyintheareaofdigitallending.

DigitalizationofAgri-finance

wasconceptualizedjointlybytheReserveBankandthe

ReserveBankInnovationHub(RBIH).Thiswillenable

deliveryofKisanCreditCard(KCC)loansinafullydigitalandhassle-freemanner.

InNovember2022,RBI

launchedapilotprojectoncentralbankdigitalcurrency(CBDC).

7

ThestructureofIndianbankingsector

ReserveBankofIndia

Financialinstitutions

Banks

Scheduledcommercialbanks

(SCBs)(asof2024)

Cooperativecredit

institutions

Publicsectorbanks(13)

Privatesectorbanks(21)

Foreignbanks(44)

All-Indiafinancialinstitutions

State-levelinstitutions

Otherinstitutions

Smallfinancebanks(SFB)

(12)

Urbancooperativebanks

(1,534)

Ruralcooperativebanks

(March21)(96,508)

Source:ReserveBankofIndia,

8

Indianbankingsectorhasgrownatahealthypace…(1/2)

JPMorgan,thelargestbankintheU.S.,remainsbullishonIndiaand

GrowthinBankCredit(US$billion)

2,500

2,000

1,500

1,000

500

0

CAGR3.34%

FY16

FY17

FY18

FY19

FY20

FY21

FY22

FY23

FY24

FY25*

JapanwithinAsiawhilealsokeentoallocateresourcestoSoutheastAsia,benefitingfromthe"ChinaPlusOne"strategy

2,316.36

OnNovember6,2024,RBIDeputyGovernorMr.T.RabiSankarlaunchedtheUnifiedLendingInterface(ULI)attheBusinessStandardBFSISummitinMumbai.TheULIaimstodemocratizeaccesstocreditfortheprivatesector,similartohowtheUnifiedPaymentsInterface(UPI)transformeddigitalpayments.

1,781.12

1,866.22

1,698.97

1,968.00

2,020.24

TheIndianbankingindustryhasbeenonanupwardtrajectoryaidedbystrongeconomicgrowth,risingdisposableincomes,increasingconsumerismandeasieraccesstocredit.

1,466.47

1,599.34

1,487.60

1,532.31

BankaccountsopenedunderGoIPradhanMantriJanDhanYojanahavedepositsofover~US$25.13billioninbeneficiaryaccounts.51.11crorebeneficiariesbankedtillDecember15th,2023.

Demandhasgrownforbothcorporateandretailloans.Services,realestate,consumerdurablesandagriculturealliedsectorshaveledthegrowthincredit.

Indiaisoneofthefastest-growingFintechmarketsintheworld.Therearecurrentlymorethan2,000DPIIT-recognizedFinancialTechnology(FinTech)businessesinIndia,andthisnumberisrapidlyincreasing.

Beingthelargestconsumptionmarket,Indiawillbecomethe3rdlargestconsumereconomyby2030,drivenbyayoungpopulationcomprising65%populationbelowtheageof35years.

Indiaalreadyhasthe2ndhighestnumberofsmartphoneusersgloballyandisthe2ndlargestInternetusermarket

Indiaissettobecomethethird-largestdomesticbankingsectorby2050.

Note:*Until12thJuly2024

Source:ReserveBankofIndia(RBI),InvestIndia,BCGReport

9

Indianbankingsectorhasgrownatahealthypace…(2/2)

India’sUnifiedPaymentsInterface(UPI)sawa52%YoYriseintransactionvolumes,reaching78.97billioninthefirsthalfof2024.UPIcontinuestodominatethepaymentsmarket,withtransactionsgrowingfrom8.03billioninJanuary2023to13.9billioninJune2024.

AsofJuly12,2024,bankcreditstoodatRs.168.12lakhcrore(US$

2,020billion).

AsofJuly12,2024,credittonon-foodindustriesstoodatRs.167.82lakhcrore(US$2,016billion).

AccesstothebankingsystemhasalsogottenbetterovertimeasaresultofthecontinuousendeavorsbytheGovernmenttoboostbankingtechnologyandfacilitategrowthinunderbankedandnon-metropolitanareas.

Banksadded2,796ATMsinthefirstfourmonthsofFY23,against

1,486inFY22and2,815inFY21.

Atthesametime,India’sbankingsectorhasremainedstabledespiteglobalupheavals,therebyretainingpublicconfidenceovertheyears.

Indianbankinghasbenefitedfromhighsavingsratesandgrowthinsavingsaswellasdisposableincomegrowth.

Currently,thereare52.08crorebeneficiariesholdinganamountofUS$27.56billion(Rs.2.29trillion)intheiraccounts.

AccordingtotheRBI,bankdepositsstoodatRs.209.36trillion(US$

2507.62billion)asofMay3,2024.

AccordingtoRBI’sScheduledBanks’Statement,depositsofallscheduledbankscollectivelysurgedbyawhoppingRs2.11lakhcrore(US$2,544billion)asonJuly12th2024.

GrowthinDeposits(US$billion)

CAGR9.23%

2,200

2,000

1,800

FY242,452.00

FY25*2,544.73

1,600

FY212,060.31

FY222,139.85

FY232,148.67

1,400

1,936.29

1,200

1,400.03

FY181,347.18

1,000

FY161,149.19

FY171,180.19

800

600

FY19

FY20

400

Source:RBIDocuments,InvestIndia,NewsArticles,IndianBanksAssociation*Until12thJuly2024

10

KeyBankingStatistics

TotalBankingsectorassets

(US$billion)

1,471.80

805.84

158.75

1,529.70

827.37

179.35

1,686.70

1,016.39

189

1,861.72

1,264.28

2021202220232024

nPublicSectorPrivateSectornForeignBanks

In2024,totalassetsinthepublicand

privatebankingsectorswereUS$1861.72billionandUS$1264.28billion,respectively.

In2024,assetsofpublicsectorbanksaccountedfor59.53%ofthetotalbankingassets(includingpublic,privatesectorandforeignbanks).

Source:IndianBank’sAssociation

InterestincomegrowthinIndian

bankingsector(US$billion)

88.7

101.6

102.4

128.1

95.7

56.6

8.4

63.6

7.9

70.0

10.0

2021202220232024nPrivateSectorPublicSectornForeignBanks

Publicsectorbanksaccountedforover57.23%ofinterestincomein2024.

TheinterestincomeofpublicbanksreachedUS$128.1billionin2024.

In2024,interestincomeintheprivatebankingsectorreachedUS$95.7billion.

‘Otherincome’growthinIndianbanking sector(US$billion)

15.45

11.31

16.76

12.40

14.48

13.10

17.59

17.46

2.08

2.36

2.99

2021202220232024

nPublicSectorPrivateSectornForeignBanks

In2024,publicsectorbanksaccountedforabout50.18%ofotherincome.

‘Otherincome’forpublicsectorbanksstoodatUS$17.59billionin2024.

In2024,‘otherincome’intheprivatebankingsectorwasUS$17.46billion.

11

Trendininvestmentdepositratioandloan-to-depositratio

90.74

73.71

85.19

83.5

75.34

69.79

64.66

68.4865.72

72.7

72.3270.74

57.37

CreditDepositRatio(%)

100

80

60

40

20

0

82.06

64.12

66.54

62.67

54.555.06

2021202220232024

nSBI&itsassociatesnNationalisedBankPublicSector

PrivateSectorForeignSector

InvestmentDepositRatio(%)

90

80

70

60

50

40

30

20

10

0

34.35

32.6

31.51

31.4130.73

29.77

78.76

60.9259.73

33.55

29.77

2021202220232024PublicSectoruPrivateSectoraForeignSector

Creditgrowthhasbeenbroad-based:allthepopulationgroups(i.e.,rural,semi-urban,urbanandmetropolitan),allthebankgroups(i.e.,public/privatesectorbanks,foreignbanks,RRBsandSFBs)andalltheregionsofthecountry(i.e.,central,eastern,north-eastern,northern,southernandwestern).

UnderReserveBankofIndiarules,banksmustsetaside4.50%ofdepositsascashreserveratio(CRR)andanother18%instatutoryliquidityratio(SLR)compliantholdings.

Source:IndianBank’sAssociation

12

RecentTrendsandStrategies

13

Notabletrendsinthebankingindustrysector…(1/3)

Improvedriskmanagementpractices

InUnionBudget2023,theKYCprocesshavebeenstreamlinedbyusinga'risk-based'strategyratherthana'onesizefitsall'approachIndianbanksareincreasinglyfocussedonadoptingintegratedapproachtoriskmanagement.

AdraftMDprovidingaconsolidatedandupdatedITgovernanceandriskmanagementframeworkforregulatedentities(REs)hasbeenplacedontheReserveBank’swebsiteinOctober2022forpubliccomments.

AsofAugust2022,Notably,publicsectorbanks(PSBs)stumbledinachievinggreatercompliancewiththedimensionsofboardeffectiveness,riskmanagement,andauditfunctions.

1

.

Technologicalinnovations

OnAugust10,2023,aspartoftheStatementonDevelopmentalandRegulatoryPolicies,theReserveBankofIndia(RBI)announcedthecreationofaPublicTechPlatformforseamlesscredit.ThisPlatformisbeingdevelopedbytheReserveBankInnovationHub(RBIH),afully-ownedsubsidiaryofRBI,Theplatformfacilitatessmoothcreditdeliverybysharingdigitalinformation.

DigitalizationofAgri-financewasconceptualizedjointlybytheReserveBankandtheReserveBankInnovationHub(RBIH).ThiswillenablethedeliveryofKisanCreditCard(KCC)loansinafullydigitalandhassle-freemanner.

InNovember2022,RBIlaunchedapilotprojectoncentralbankdigitalcurrency(CBDC).

AsonApril2024,therewere581banksactivelyusingUPI.ThetotalnumberofDigitaltransactionsasonDecember2023,amountedto15.08billion,withatotalvalueofRs.2.1trillion(US$25.27billion).

2

Focusonfinancialinclusion

Theemergenceandexpansionoffintech,hasplayedacrucialroleinenhancingfinancialinclusion.

TheNationalStrategyforFinancialInclusion(NSFI)2019-24setsforththevisionandkeyobjectivesoffinancialinclusionpoliciesinIndia,withanemphasisonenhancingdigitalfinancialinclusion,promotingfinancialliteracyandstrengtheningthegrievance

redressalmechanisminthecountry.

3

Source:ReserveBankofIndia,UnionBudget2023-24,InvestIndia

14

Notabletrendsinthebankingindustrysector…(2/3)

4

Consolidation

Banksincreasinglyconsolidationtoderivegreaterbenefitssuchasenhancedsynergy,costtake-outsfromeconomiesofscale,organizationalefficiencyanddiversificationofrisks.

Afterconsolidatingforthelasttwoyears,Indianbankstookoffthisyear,liftedbyfallingNPAs,highercreditgrowthandrisingdigitalization.

5

FocusonJanDhanYojana

UnionMinisterofFinance,Ms.NirmalaSitharaman,announcedthatoverUS$450billionhasbeentransferredthroughDirectBenefitTransfers(DBT)tocitizensinthelasteightyears.

PMJDYaccountholdersreceivedirectbenefittransfer(DBT)fromtheGovernmentundervariousschemes

AmountingtoRs.2,28,057crore(US$27.32billion)52.30crorenumberoftotalbeneficiariesbankedtillMay2024.

Within10daysofthenationwidelockdownduetoCovid-19,morethanabout20crorewomenPMJDYaccountswerecreditedwithex-gratia.

Itprovidesanavenueforthepoortobringtheirsavingsintotheformalfinancialsystem,anavenuetoremitmoneytotheirfamiliesinvillagesbesidestakingthemoutoftheclutchesoftheusuriousmoneylenders.

6

WideusabilityofRTGS,NEFTandIMPS

NEFT&RTGSpaymentsystemhasbeenincludedbySecuritiesExchangeBoardofIndia(SEBI)totheexistingmethodslistthatacompanytotheirshareholders&investorscanuseforpaymentofdividendorothercashbenefits.

Round-the-clockavailability

ThenumberoftransactionsthroughIMPShasfurtherincreasedby10.4%YoY.

ThenumberoftransactionsthroughRealTimeGrossSettlement(RTGS)increasedby9.2%YoYandNationalElectronicFundsTransfer(NEFT)increasedby43.4%YoYinJune2024.

Source:IndianBank'sAssociation,PradhanmantriJanDhanYojna,MinistryofFinance-Departmentoffinancialservices,NewsArticles

15

Notabletrendsinthebankingindustrysector…(3/3)

KnowYourClient

RBImandatedtheKnowYourCustomer(KYC)Standards,wherein,allbanksarerequiredtoputinplaceacomprehensivepolicyframeworkinordertoavoidmoneylaunderingactivities.

TheKYCpolicyisnowcompulsoryforopeninganaccountormakinganyinvestmentsuchasmutualfunds.

7

8

RBIRetailDirectScheme

RBIRetailDirect.RetailDirectschemeisaone-stopsolutiontofacilitateinvestmentinGovernmentSecuritiesbyIndividualInvestors.

Non-residentIndians(NRIs)havetheopportunitytodirectlyinvestingovernmentsecurities(G-Secs),statedevelopmentloans

(SDLs),andtreasurybills(T-bills)throughtheReserveBankofIndia'sretaildirectplatform.However,sovereigngoldbonds(SGBs)andfloatingratebondscannotbeaccessedthroughthischannelatpresent.

FollowingadditionalservicesareproposedtobemadeavailabletotheRetailDirectInvestorontheRBIRetailDirectPortal:

Nomination

Gifting

Pledge/Lien/Transfer

GlobalHackathon

InNovember2023,ICodeFoundationmarkstheconclusionofthe7thGlobalHackathon,bringingtogetherover3millionstudentsfrom70+countries.

Thisyear'seventwitnessedanexceptionalturnoutwithover3millionstudentsfrom70+countriesand10,000+schoolsworldwidetakingpart.

9

Source:RBI

16

Digitallendingmarketscenario

India’sDigitalLendingForecast(US$billion)

800

700

600

500

400

300

200

100

0

FY15

FY16

FY17

FY18

FY19

FY20

FY21

FY22

FY23

FY30F

Indiaistheworld'slargestmarketforAndroid-basedmobilelendingapps,accountingfor~82%ofallonlinelendersworldwide.

TheIndiandigitalconsumerlendingmarketisprojectedtosurpassUS$720billionby2030,representingnearly55%ofthetotalUS$

720

1.3trilliondigitallendingmarketopportunityinthecountry.

ThevalueofthedigitallendingmarketinIndiawasUS$270billionin2022.By2023,thedigitallendingmarketreachedwortharound~US$350billion.MostofthemarketwasservedbyfintechfirmsandNBFCs.

India'sdigitallendingmarketwitnessedagrowthofCAGR39.5%overaspanof10years.

350

Digitallendingissettoaccountfor60%ofthetotalIndianfintechmarketby2030.

33

46

58

75

110

90

200

270

Dataanalysisindicatesthatdigitallendingissettoaccountfor60%ofthetotalIndianfintechmarketby2030.Theincreaseintheproliferationofformalfinance,growingpercapitaincomeandgreaterinternetpenetration,amongothers,willdrivethegrowthindigitallending.

DigiDhanMela:UnderthevisionofDigitalIndia,GovernmentofUttarPradeshispromotingDigitalpaymentthroughawarenesscampaignbeingorganizedintheStateasaDigiDhanMela.Thecoreobjectiveofthiseventistoincreasetheawarenessamongthecitizenw.r.ttoDigitalPayment.

Source:CentreFore-Governance,PressInformationBureau,NewsArticle

17

Mobilebankingtoprovideacost-effectivesolution…(1/2)

70

60

50

40

30

58.56

46.1

39.9

42.7

Soaringruraltele-densitypavesthewayformobilebanking

(in%)

————

56.6659.558.2159.055958.0159.19

48.3

50.3

20

10

0

2012201320142015201620172018201920202021202220232024

AsonMarch2024Indiahasanoveralltele-densityof85.69%,ofwhich,thetele-densityoftheruralmarket,whichislargelyuntapped,standsat59.19%.

AxisBankhaslaunched'Sampann,'ahigh-endbankingservicedesignedforcustomersresidinginruralandsemi-urbanareasinJuly2023.Thisendeavoralignswiththebank'sdedicationtoacustomer-centricapproachforRUSU(RuralandSemi-urbancustomers).

BankingpenetrationinruralIndiapickingpace

TheBudget2022proposedthatIndia’spostofficesbeintegratedintothecorebankingsystem,toenablefinancialinclusionandaccountaccessthroughnetbanking,mobilebanking,ATMs,andonlinefundtransfersbetweenpostofficeaccountsandbankaccounts.Themovewasbeneficialtofarmersandseniorcitizensinruralareasasitbroughtinteroperabilityandfinancialinclusionotherthanallowingtheunbankedcustomerstoreceivedirecttransfersofgovernmentsubsidies,bringingthemintotheformalbankingsystem.

CurrentlyRuralconsumptionaccountsfor45%ofalldataconsumptioninIndia.Thereare7ruralinternetsubscribers,forevery10urbaninternetsubscribers.

InSeptember2023,HitachiPaymentServiceslaunchedIndia'sfirst-everUPI-ATMwithNPCI.

InMarch2023,HDFCBankplans675branchesinsemi-urban,ruralareasintheupcoming14months

RuralfintechinIndiaisrulingtheroost.Bysimplifyingfinancethroughtechnology,thesecompanieshavebeencreatingbankingmodelsthataresimpler,smarter,andmoresecurefortheirruralcustomers.

Localmoney-lendingpracticesinvolveinterestrateswellabove30%.Therefore,makingbankcreditisacompellingalternative.

Source:NewsArticles,Budget2022,InvestIndia,PressInformationBureau

18

Mobilebankingtoprovideacost-effectivesolution…(2/2)

Mobile

rémittence

Mobile

recharge

Mobilebanking

(fund

transfers,

etc.)

Mobile

commerce

Paymentofbills

Robustassetgrowth

Mobile

bankingisaserviceprovidedbyabankorotherfinancialinstitutionthatallowsitscustomerstoconductdifferenttypesoffinancialtransactionsremotelyusingamobiledevicesuchasamobilephoneortablet.Itusessoftware,usuallycalledanapp,providedbythebanksorfinancialinstitutionforthepurpose.EachBankprovidesitsownmobilebankingAppforAndroid,WindowsandiOSmobileplatform(s).Thegrowthofmobilebankingcouldimpactthebankingsectorsignificantly.

Thedevelopmentsinmobiletelephone,asalsothemobilephonedensityinthecountry,withover885millionsubscribersasonSeptember2023,presentsauniqueopportunitytoleveragethemobileplatformtomeettheobjectivesandchallengesoffinancialinclusion.Byharnessingthepotentialofmobiletechnology,largesectionsoftheun-bankedandunder-bankedsocietycanbeempoweredtobecomeinclusivethroughtheuseofelectronicbankingservices.

MobilebankingisespeciallycriticalforcountrieslikeIndiaasitpromisestoprovideanopportunitytoprovidebankingfacilitiestoapreviouslyunder-bankedmarket.

•AccordingtotheBostonConsultingGroup,PhonePehas47%ofUPImarketsharefollowedbyGooglePayduring9MFY23.

•InSeptember2023,RBIgovernorShaktikantaDasintroducedcreditlineonUPI,NFC-basedofflinepaymentmodulesUPILITE

XandTap&Pay,alongwithconversationalpaymentssolutionsHello!UPIandBillPayConnect,fortheeaseofcustomers.

Source:ReserveBankofIndia,PressInformationBureau,BostonConsultingGroup

19

Strategiesadopted

1Increaseduseoftechnology

•CentralBankDigitalCurrency(CBDC)pilotlaunchedbyRBIinretailsegmenthascomponentsbased