India’s inter-departmental committee has approved major domestic and foreign bank expansion proposals while stressing strong financial inclusion progress.
New Delhi
M. Nagaraju, Secretary of the Department of Financial Services (DFS), on Thursday chaired a crucial meeting of the inter-departmental committee (IDC) to review proposals submitted by the Reserve Bank of India (RBI) regarding the establishment of branches, representative offices and subsidiaries of foreign banks in the country. The committee also examined proposals from Indian banks seeking clearance to expand their footprint abroad.
During the meeting, the IDC further assessed requests from foreign banks for relocation of their existing branches within India. After detailed scrutiny and consultations, the committee recommended all proposals placed before it. Representatives from the Ministry of Home Affairs (MHA), Ministry of External Affairs (MEA), Department of Commerce (DoC) and the RBI participated in the discussions, ensuring a broad and coordinated evaluation.
The IDC operates under the DFS and functions as the nodal body responsible for assessing expansion proposals involving both domestic and foreign banking entities. According to an official statement from the Ministry of Finance, the committee adopts a consensus-driven approach, consulting with all relevant ministries before finalising its recommendations. This mechanism is intended to ensure that decisions are comprehensive, secure and aligned with national priorities.
Earlier, speaking at the CII Financing Summit 2025, Nagaraju highlighted India’s rapid progress in financial inclusion and digital transformation. He described the two areas as among the nation’s most remarkable achievements over the past decade, reshaping financial access and strengthening institutional trust.
Nagaraju noted that the Financial Inclusion Index reached 67.0 in March 2025, up from 64.2 the year prior, underscoring increasing participation in the formal financial ecosystem. He also pointed to the continuing success of the Pradhan Mantri Jan Dhan Yojana (PMJDY), with the number of Jan Dhan accounts rising from 52 crore to nearly 57 crore in just 18 months, reflecting the sustained momentum of India’s inclusion-driven reforms.
