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NewsThe Hindu BizMonday, 7 September 2026NEW

C. Rangarajan flags fewer regional rural banks as ‘a step in the wrong direction’; urges RBI to incentivise SFBs

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Summary

Former RBI Governor says consolidation risks eroding RRBs’ local character; says 11 small finance banks will not meet the sector’s unmet credit needs

Key Facts

TypeNews
SourceThe Hindu - Business
PublishedMonday, 7 September 2026
Affected Population1.4 billion citizens, 63 million MSMEs

Key Numbers

GDP: $3.9 trillion (2025 est.)
Fiscal deficit target: 4.4% of GDP
GST collection: Rs 1.87 lakh crore/month avg
PMAY-G: 2.95 crore houses sanctioned

Key Authorities

Ministry of FinanceRBISEBIDEAMinistry of Rural Development

Key Stakeholders

TaxpayersBanks & NBFCsInvestorsRural HouseholdsGram PanchayatsSHGs

Government Context

NDA IIIBJP-led NDA
Centre-Right
LeftCentreRight

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