Might be India also wants to reduce its number of banks and prepare for CBDC complete rollout
China has been reducing the number of banks for the past few years. The numbers below were making rounds on social media and might not be trustworthy. But CNBC and Fitch did cover the story.
Year-by-year reductions (from Chinese reports citing regulator lists) roughly looked like this:
2021: very small decline
2022: 35
2023: 77
2024: 195
2025: 670 (sharp acceleration)
Probably, it was the right call to sell IDBI bank because India has already spent crores and crores to clean up its balance sheet and we don't want to get into cleaning up again.
And it also gives us the opportunity to reduce the number of banks because we won't need more banks after CBDC is fully rolled out.
RBI will be taking care of the system mainly, such as using ULI systems and other systems.
In EconSphere
Prem Srinivasan@premsrinivasan
Indian Government is the clear winner in the IDBI stake sale of roughly 60 percent to Canadian company Fairfax, run by Indian origin Prem Wasta.
Fai...
