Branch additions drop as Modi govt's digital push changes banking sector

The government’s digital push, the rising use of technology in back-end processes, and the growing market for financial technology products have changed the banking landscape.

The Reserve Bank of India’s (RBI’s) May 2017 guidelines shifted the focus from branches to banking outlets, which include banking correspondents along with branches. The revised guidelines work well with the banking sector’s tilt towards partnerships.

“The definition of branch is changing. With the new regulations, even a banking point can be a branch. You just need a customer touch point,” said Romesh Sobti, managing director, IndusInd Bank, at a press conference.

Branches have always