The Reserve Bank of India (RBI) warned that banks face increasing competition from equity markets and technology-driven solutions.
Its ‘Trend and Progress of Banking in India 2024‑25’ report noted that while traditional bank credit growth is moderating, corporate funding via equity and non-bank sources is rising. Digital transformation offers convenience but also exposes banks to cybersecurity and operational risks.
The RBI emphasized the importance of robust risk management, responsible technology adoption, and financial inclusion to stay competitive. Banks must adapt quickly to evolving customer expectations and emerging funding alternatives to maintain resilience.