Press Release

Government Initiatives are Boosting the India Digital Banking Industry Growth

Rising smartphone adoption, increasing usage of mobile payment services, and government initiatives are the leading factors driving the growth of India digital banking industry.

According to TechSci Research report, “India Digital Banking Industry– Opportunities, 2015-2022,” the rising awareness among consumers regarding the digital banking solutions, growing need for convenience, increasing smartphone penetration in the country, etc., are some of the factors fueling the digital banking industry in India. Digital banking is defined by the Reserve Bank of India (RBI) as all current and future electronic banking services offered by a bank with a license for the completion of financial, banking, and other transactions, instruments through electronic devices or equipment over websites (online banking), mobile phones (mobile banking), or other digital channels that involve a high degree of process automation, and cross-institutional service capabilities operating under improved technical architecture and differentiated business strategy.

Along with traditional brick and mortar banking locations, digital banking services are expanding, and the RBI has announced the creation of Digital Banking Units to meet these demands and expand the penetration of banking services across India. Each Digital Banking Unit would include digital infrastructure and function as a specialized fixed point business hub. Digital banking units do not use any paper, unlike a conventional bank branch. The DBUs provide users with a full digital experience in addition to cash withdrawal/deposit through ATMs/CRMs, including the opening of bank accounts, fixed deposits & recurring deposits, printing of passbooks, mobile banking, internet banking, issuing of debit cards, credit cards, mass transit system cards, etc. The whole processing of paperless loans for businesses and MSMEs is also included in services offered.

Browse over XX market data Figures spread through XX Pages and an in-depth TOC on the "India Digital Banking Industry

Customers are able to access banking services year-round in a cost-effective, accessible, and paperless manner owing to DBUs, which hold the majority of critical financial services in a secure and connected environment. Although these services are offered in self-service mode, manual assistance is accessible during few hours of the day. Clients from rural, semi-urban, tier III and below locations, older individuals, or customers with little to no digital expertise are benefiting from this assistance when it comes to using digital banking services. This exposure is consequently raising the general public's understanding of digital payments.

Moreover, these DBUs are increasing customer convenience for tech-savvy customers by enabling them to accomplish basic banking tasks quickly, easily, and securely online. Customers in remote locations, particularly those with low banking penetration, are also profiting from this because it drastically reduces the cost of establishing and maintaining bank offices. Digital Banking Units have a lot of advantages for banks as well. Banks are constantly aiming to minimize their physical footprint in the current digital era in order to achieve economies of scale. By establishing DBUs, banks can scale back the size of their physical branches and improve their digital capabilities to provide a wide number of self-service banking facilities. This will lower the cost of the resources and infrastructure needed for a standard banking setup, lowering operational costs.

On October 17, 2022, 75 digital banking locations in 75 Indian districts became operational. Each of the 29 states and eight union territories currently has at least one digital banking branch established (UTs). With four digital banking units each, Karnataka, Tamil Nadu, Uttar Pradesh, Odisha, and Rajasthan are followed by Gujarat, Kerala, Madhya Pradesh, Maharashtra, Punjab, Sikkim, and Telangana.

The India digital banking industry is segmented based on total number of banks in India, total deposits in India, total digital lending in India, total transactional value paid digitally in India, total number of transactions paid digitally in India, total number of ATMs in India, and competitional landscape. In terms of total digital lending, the market is divided into bank type and segregated into public sector banks, private sector banks, foreign banks and NBFCs. Out of which, private sector banks held the majority of share as of 2022, due to their wide offerings to customers. Also, the private sector banks are expanding their customer base by launching new digital solutions. For instance, in 2022, ICICI Bank launched iLens, a digital lending solution, powered by the TCS lending platform. Customers can digitally avail housing loans in a hassle-free process through iLens. This includes loan disbursement, uploading of documentation, quick sanctions, and on-boarding via paperless login.

Key market players in the India digital banking industry include:

  • HDFC Bank Limited
  • ICICI Bank Limited
  • Bank of India Limited
  • State Bank of India
  • Axis Bank Limited
  • Punjab National Bank
  • IndusInd Bank Limited
  • Bank of Baroda
  • Kotak Mahindra Bank Limited
  • Yes Bank Limited


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"The rising awareness among people regarding the benefits offered by digital banking is fueling the growth of this industry across the nation. Also, the government initiatives such as launch of digital banking units, are contributing to the overall growth of this industry. The RBI states that these digital banking units will "allow clients to enjoy efficient, paperless, secured, and linked access and better digital experiences of such products and services with the majority of services being offered in self-service mode at any time, all year round." said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm.

India Digital Banking Industry By Total Number of Banks in India (Bank Type), By Total Deposits in India (Deposit Type, Bank Type, Region), By Total Digital Lending in India (Bank Type), By Total Transactional Value Paid Digitally in India (Value, ), By Total Number of Transactions Paid Digitally in India (Volume), By Total Number of ATMs in India (Bank Type), Opportunities, 2015-2022, has evaluated the growth of digital banking industry in India and provides statistics and information on industry structure. The report is intended to provide cutting-edge market intelligence and help decision-makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges and opportunities present in digital banking industry in India.



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