Centre pushes state-run banks to accelerate rural expansion | Mint

India’s Centre has urged state-run banks to accelerate rural expansion to strengthen financial inclusion in villages, according to two sources cited by Mint. The Union finance ministry asked public sector banks (PSBs) to open branches in villages with populations above 3,000. The plan builds on government efforts to bolster banking infrastructure in unbanked and underbanked rural areas while protecting PSB customer bases as private banks, small finance banks, and digital providers expand beyond urban markets. For FY26, banks were tasked with opening 576 branches, with 511 already opened and 65 not yet operational, the sources said. The article notes branches remain critical for deposits, lending, KYC, government scheme implementation, and dispute resolution, and highlights rural India’s role in priority-sector lending and low-cost deposits.