The proposal places bank size and lending capacity at the centre of the discussion on India’s future banking needs. It points towards consolidation as a way to prepare for higher credit requirements as the country works towards its 2047 development ambition.

The report also describes a future in which banks rely more on data to shape how they serve customers. Greater use of artificial intelligence for automation is another direction highlighted, alongside the call for a banking system built around a smaller number of large institutions.

This outlook follows what the report describes as substantial improvements in the banking sector since 2014. However, the available account does not explain which changes underpin that assessment or provide figures showing how much additional credit banks would need to supply.

Important details of the consolidation proposal have not been stated. The report does not identify any banks, set out a merger timetable or explain how consolidation would be carried out. It therefore presents a broad direction rather than a specific merger plan.