With less than 2,000 banks with deposit-taking permissions serving a population of 1.3 billion people, India has far too few banks to cater to its needs. While there is a need to build the periphery through non-bank money transfer and lending services providers, there is also a need to build strong banking institutions that can offer basic services such as retail deposit-taking universally and, as we wait for bond markets to pick up the slack, the ability to finance the corporate sector and the much-needed infrastructure sector.
Read the full article here
