Exploring NBFC entry into banking: Govt, RBI

Business Jul 11, 2025

For the first time in 10 years, the Indian government and RBI are considering handing out new banking licenses.
This is all part of a bigger push to boost India's financial system as the country eyes a spot as the world's third-largest economy by 2027-28.
They're also looking at merging some public sector banks to make them stronger.

Only 2 Indian banks feature in global rankings

The focus is on turning small finance banks and big non-banking finance companies into full-fledged banks, but only if they meet strict RBI rules—like keeping promoter ownership below 26%.
The goal? To help more Indian banks climb global rankings (right now only SBI and HDFC Bank make the cut), and give both public and private players a shot at making India's banking sector more competitive worldwide.