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BankingNABARD / RBI

Finance Ministry Pushes PSBs to Open More Branches

4 July 20251 min read
BANKING & FINANCEFinance MinistryPushes PSBs toOpen MoreBranches4 July 2025safalsetu.com

Why in the news

Despite strong digital use, public sector banks were urged to add branches faster to match private rivals.

Key facts

  • PSBs to identify high-potential locations and open more branches.
  • Aim: offset private bank and SFB growth and build trust through a phygital model.
  • Northeast singled out for low branch density.

Purpose

  • Counter competitors’ network growth.
  • Combine physical presence with digital services.
  • Reach underserved, semi-urban and rural customers who still value a nearby branch.

Exam angle

  • Term: phygital (physical plus digital).
  • Directing body: Union Finance Ministry.

Test yourself

1. What does the 'phygital' model mentioned in the PSB branch expansion push combine?

Phygital means physical plus digital.

2. Which region was singled out for banking infrastructure expansion due to low branch density?

The Finance Ministry urged expansion in the Northeast.

3. Which banks were told to speed up branch expansion?

The directive was addressed to PSBs.

This topic is part of Daily Current Affairs 4 July 2025 (15 topics).

All topics of the dayDay quizJuly 2025

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