RBI ANNUAL REPORT 2025-26
CHAPTER IV: CREDIT DELIVERY AND FINANCIAL INCLUSION
1. Credit Delivery and Financial Inclusion
Overview
RBI
continued to widen banking access and strengthen credit delivery, especially
for agriculture and micro/small enterprises. Major initiatives included re-KYC
and financial-literacy campaigns, unclaimed-deposit settlement, review of the
Lead Bank Scheme, expansion of the digital payments ecosystem and the National
Strategy for Financial Inclusion (NSFI) 2025-30.
·
Review the Financial Inclusion
Index.
·
Strengthen MSME outreach and
inclusion.
·
Achieve 100% EDDPE coverage in
at least 80% of districts by March 2026.
2. Implementation Status and Credit Delivery
FI-Index
was 67.0 in March 2025, up from 64.2 in March 2024. The collateral-free MSE
loan limit was enhanced from ₹10 lakh to ₹20 lakh with effect from April 1,
2026. MSME town-hall outreach was strengthened through district-level MSME
SAMVAAD meetings.
By
March 31, 2026, 100% EDDPE coverage had been achieved in more than 80% of
districts, specifically 710 districts. This included all districts in 22 states
and 8 UTs.
SCB
priority-sector lending stood at 45.0% of ANBC/CEOBSE, whichever was higher,
against the prescribed 40% overall target. Each bank group achieved the 40%
overall target.
KCC
remains a single-window facility for farmers’ working-capital and investment
credit. Operative KCCs fell 11.7% to 256.2 lakh in 2025-26, while total
outstanding KCC credit fell 4.9% to ₹5,71,444 crore. Data are provisional; the
document attributes much of the decline to reclassification/declassification by
select private sector banks.
SCB
credit to MSMEs grew 23.5% year-on-year as at end-December 2025, versus 18.3%
in the corresponding period a year earlier.
3. Financial Inclusion, Lead Bank Scheme and
Digital Coverage
Lead
Bank responsibility was assigned to 12 PSBs and 2 private banks, Jammu &
Kashmir Bank and ICICI Bank, covering 778 districts.
The
EDDPE programme had been extended to all districts in August 2023 except two
districts of Andaman & Nicobar Islands. By March 31, 2026, 710 districts
had 100% coverage.
The
FI-Index combines access, usage and quality dimensions and draws on data from
banking, investment, insurance, postal and pension sectors.
|
MPFI indicator |
Dec 2025 total |
|
Banking
outlets, own-staff branches |
1,70,189 |
|
Fixed-point
BC outlets |
11,75,250 |
|
BSBDAs
(lakh) |
7,304 |
|
BSBDA
amount (₹ crore) |
3,45,477 |
|
OD
facilities in BSBDA (₹ crore) |
414 |
|
ICT-BC
transactions (lakh) |
39,413 |
|
ICT-BC
transaction amount (₹ crore) |
11,89,767 |
The
chapter notes revised reporting of BC outlets between the earlier FIP return
and the MPFI return. Fixed-point BC outlets are outlets operating at least 4
hours a day, 5 days a week.
4. NSFI 2025-30 and Financial Literacy
NSFI
2025-30 was formally unveiled on December 1, 2025 after the 32nd FSDC
Sub-Committee meeting. It builds on NSFI 2019-24 and seeks to remove demand and
supply-side barriers, improve last-mile access, customer protection and
grievance redressal, and link financial inclusion with skilling and
livelihoods.
The
strategy contains the Panch-Jyoti and 47 action points. Its focus areas include
an equitable, responsible, suitable and affordable range of services; a
gender-sensitive approach; livelihood/skill linkages; stronger customer
protection and grievance redressal; and better monitoring and measurement. Key
ecosystem institutions include RBI, SEBI, IRDAI, PFRDA, NABARD, NSDC and NCFE.
Financial
Literacy Week 2026 was observed from February 9-13, 2026, focusing on KYC and
account discipline, using centralised mass-media and localised campaigns.
5. 2026-27 Priorities
·
Implement NSFI 2025-30 action
points.
·
Move towards 100% EDDPE
coverage in all districts by March 2027.
·
Continue MSME and last-mile
credit-delivery initiatives.
PART 2: IMPORTANT NUMBERS
|
Topic |
Figure |
Meaning |
|
FI-Index
Mar 2025 |
67.0 |
Improved
from 64.2 in Mar 2024 |
|
MSE
collateral-free loan limit |
₹20 lakh |
Raised
from ₹10 lakh, effective Apr 1 2026 |
|
EDDPE
fully covered districts |
710 |
More than
80% of districts by Mar 31 2026 |
|
SCB PSL |
45.0% |
ANBC/CEOBSE
whichever higher, vs 40% overall target |
|
Operative
KCCs |
256.2 lakh |
2025-26
provisional |
|
Total KCC
outstanding |
₹5,71,444
crore |
2025-26
provisional |
|
MSME
credit growth |
23.5% |
SCBs, y/y
to end-Dec 2025 |
|
Lead Bank
coverage |
778
districts |
12 PSBs +
2 private banks |
|
NSFI
action points |
47 |
Under
Panch-Jyoti |
PART 3: IMPORTANT DATES
|
Date / Year |
Event |
|
Aug 2023 |
EDDPE
extended to all districts except two in Andaman & Nicobar Islands |
|
Mar 31,
2026 |
710
districts achieved 100% EDDPE coverage |
|
Apr 1,
2026 |
₹20 lakh
collateral-free MSE loan limit effective |
|
Dec 1,
2025 |
NSFI
2025-30 formally unveiled |
|
Feb 9-13,
2026 |
Financial
Literacy Week 2026 |
PART 4: IMPORTANT RBI / GOI / OTHER INITIATIVES
|
Initiative |
Organisation |
One-line purpose / key fact |
|
NSFI
2025-30 |
RBI/financial-sector
regulators |
Strategic
framework for deeper inclusion, last-mile access, quality, literacy and
customer protection. |
|
EDDPE |
RBI |
Digital-payment
saturation programme, 710 districts at 100% coverage by Mar 31 2026. |
|
MSME
SAMVAAD |
RBI |
District-level
outreach added to MSME town-hall framework. |
|
Aapki
Poonji, Aapka Adhikar |
DFS/RBI/banks |
Campaign
for return of unclaimed deposits and settlement of eligible DEA Fund claims. |
|
FLW 2026 |
RBI |
KYC and
account-discipline awareness, Feb 9-13, 2026 |
|
Lead Bank
Scheme review |
RBI |
Draft
framework aimed at improving lead-bank coordination and last-mile delivery. |
PART 5: KEY DEFINITIONS / CONCEPTS
|
Term |
Meaning |
|
FI-Index |
Composite
index of financial inclusion covering access, usage and quality. |
|
EDDPE |
Expanding
and Deepening of Digital Payments Ecosystem programme. |
|
KCC |
Single-window
facility for farmers’ working-capital and investment credit. |
|
BSBDA |
Basic
Savings Bank Deposit Account. |
|
MPFI
Return |
Monitoring
Progress of Financial Inclusion return used to track FI parameters. |
|
Lead Bank
Scheme |
District-level
framework for coordinating banking and credit delivery. |
PART 6: CONFUSION POINTS
|
Confusion |
Correct distinction |
|
PSL 45% vs
target 40% |
45% is the
SCBs achieved overall PSL ratio; 40% is the prescribed overall target. |
|
EDDPE 80%
vs 100% |
The
2025-26 goal was 100% coverage in 80% of districts; actual achievement was
710 districts, more than 80% of districts. |
|
KCC
decline vs credit growth |
KCC
accounts and outstanding KCC credit declined, while MSME bank credit grew
strongly. These are different datasets. |
|
FI-Index
year |
67.0 is
March 2025, not March 2026. |
PART 7: LAST-MINUTE EXAM FACTS
1.
FI-Index rose to 67.0 in March 2025 from 64.2
in March 2024.
2.
Collateral-free MSE loan limit became ₹20 lakh
from April 1, 2026.
3.
EDDPE reached 100% coverage in 710 districts by
March 31, 2026.
4.
SCB PSL was 45.0% against the overall 40%
target.
5.
Operative KCCs were 256.2 lakh in 2025-26, down
11.7%.
6.
Total KCC outstanding was ₹5,71,444 crore, down
4.9%.
7.
MSME credit growth by SCBs was 23.5% y/y to
end-Dec 2025.
8.
12 PSBs and 2 private banks carried Lead Bank
responsibility for 778 districts.
9.
NSFI 2025-30 was unveiled on Dec 1, 2025.
10.
NSFI 2025-30 contains 47 action points under
Panch-Jyoti.
11.
FLW 2026 ran Feb 9-13, 2026 on KYC and account
discipline.
12.
MPFI total banking outlets own-staff branches
were 1,70,189 in Dec 2025.
13.
Fixed-point BC outlets were 11,75,250.
14.
BSBDA total was 7,304 lakh and amount ₹3,45,477
crore.
15. ICT-BC transactions were 39,413 lakh worth ₹11,89,767 crore.