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Scheduled Commercial Bank (SCB) is a commercial bank listed in the Reserve Bank of India’s (RBI) Second Schedule of the RBI Act, 1934. These banks adhere to the RBI’s regulations and are pivotal to India’s financial system. SCBs include public sector banks, private sector banks, foreign banks, regional rural banks (RRBs), and cooperative banks operating commercially. SCBs are important for mobilizing savings and channelling them into productive investments, fostering economic growth. These banks offer various services, including deposit accounts, credit facilities, payment systems, and wealth management. Public sector banks dominate the sector, while private and foreign banks focus on innovation and technology-driven services. The RBI monitors SCBs to ensure financial stability and promote inclusive growth.
Over the last two decades, the total number of Scheduled Commercial Bank offices across India grew significantly from 68,645 in 2004 to 158,642 in 2023, representing an impressive increase of about 131% over this period. The Southern Region consistently demonstrated the most robust banking infrastructure expansion, starting with 18,923 offices in 2004 and reaching 44,138 by 2023 – almost a 133% increase. Within this region, states like Karnataka and Tamil Nadu showed robust growth in banking penetration. The Central Region also followed a similar trajectory, growing from 13,817 to 31,137 offices, with Uttar Pradesh significantly contributing to this expansion. The Eastern Region also experienced substantial banking network growth, increasing from 12,043 to 26,677 offices. States like Bihar and West Bengal emerged as key drivers behind this expansion, reflecting the region’s increasing economic integration and financial inclusion efforts. The North-Eastern Region, traditionally considered less economically developed, saw a noteworthy increase from 1,918 to 4,918 offices, indicating concerted efforts to improve financial access in this geographically challenging region. Urban centres and economically advanced states like Delhi, Maharashtra, and Gujarat showed consistent and significant growth in banking infrastructure. For instance, Maharashtra’s bank offices grew from 6,565 in 2004 to 13,972 in 2023, while Gujarat expanded from 3,767 to 8,862 offices. This growth correlates with these state’s economic dynamism and increasing commercial activities. The steady and consistent growth across all the regions indicates a deliberate and strategic approach to expanding banking services, driven by economic liberalization, digital banking transformation, financial inclusion policies, and the government’s push to bring more of the population into the formal banking ecosystem. The nearly 2.3-fold increase in banking offices over two decades is a testament to India’s rapid financial sector development and its commitment to broader economic democratization.
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