Banking Sector Liberalization in India: Some Disturbing Trends
By Kavaljit Singh | September 2005
In the first week of August 2005, Reserve Bank of India (RBI), country’s central bank, issued a list of 391 under-banked districts in India with population per branch more than the national average of 16,000. The list was part of a policy directive issued by the central bank to all commercial banks asking them to work out their branch expansion strategies “keeping in mind the developmental needs of un-banked regions.” If 391 districts out of a total 602 districts in India are un-banked and under-banked, it raises several policy issues regarding the thrust of banking sector liberalization process and its adverse consequences.