Jou nal o Resea ch and De elopmen
Pee Re iewed In e na ional, Open Access Jou nal.
ISSN : 2230-9578 | Websi e: h ps://j d b.o g Volume-17, Issue-9(I) | Sep - 2025
238
The Union Budge Policy Rega ding he Banking Sec o 2025
D . Va sha Rameshwa Bhu ada1, M . Amol P akash Rao Ka pe2
Dep . O Comme ce, ACS College, Ganache
Manusc ip ID:
JRD -2025(I)-170953
ISSN: 2230-9578
Volume 17
Issue 9(I)|
Pp. 238-240
Sep . 2025
Submi ed: 9 Aug. 2025
Re ised: 20 Aug. 2025
Accep ed: 20 Sep . 2025
Published: 30 Sep . 2025
Abs ac
The Union Budge 2025 places s ong emphasis on h ee s a egic pilla s o he banking
sec o —expanding inancial inclusion, accele a ing digi al ans o ma ion, and s eng hening p io i y
sec o lending. This s udy e alua es he ole o hese budge a y measu es in shaping banking ope a ions in
Maha ash a, a s a e wi h a unique dual s uc u e o ad anced u ban inancial hubs and ex ensi e u al
coope a i e ne wo ks. Using a desc ip i e and analy ical app oach, he esea ch examines policy
ini ia i es such as PM SVANidhi enhancemen , UPI-linked c edi ca ds, CBDC expansion, and inc eased
c edi gua an ees o MSMEs, alongside hei implemen a ion challenges. Findings e eal ha while
u ban banks a e well-posi ioned o adop digi al inno a ions, u al coope a i e ins i u ions ace pe sis en
ba ie s ela ed o in as uc u e, skills, and egula o y complexi y. The s udy concludes ha b idging he
u ban– u al di ide will equi e a ge ed in es men s in in as uc u e, skill de elopmen , and s eamlined
egula ions o ensu e equi able bene i s ac oss he s a e’s di e se banking ecosys em.
Keywo ds: Union Budge 2025, banking sec o , Maha ash a, inancial inclusion, digi al banking, p io i y
sec o lending.
In oduc ion
The Union Budge se es as a c i ical policy ins umen shaping India’s economic
di ec ion. In 2025, he budge ’s p o isions o he banking sec o emphasise h ee s a egic
pilla s: expanding inancial inclusion, accele a ing digi al banking, and s eng hening p io i y
sec o lending. These measu es aim o enhance access o o mal inance, imp o e se ice
e iciency, and channel c edi owa ds p oduc i e sec o s. Maha ash a go e nmen has wi h i s
dual sys em o ad anced u ban banking in Mumbai and ex ensi e u al coope a i e ne wo ks,
o e s a unique case o e alua ing budge a y impac s. Howe e , ansla ing budge policy in o
measu able ou comes o en encoun e s ope a ional and in as uc u al challenges, especially in
u al egions. Go e nmen plans o annually which known as Union Budge o India is he
go e nmen ’s yea ly plan o how i will ea n and spend money. I also decides policies o
di e en sec o s, including banking. Fo banks, he budge is no jus a inancial epo —i
guides how hey gi e loans, manage hei unds, and suppo economic g ow h. Announcemen s
like adding capi al o public sec o banks (PSBs), changing lending ules, gi ing ax bene i s,
and s a ing inancial inclusion p og ams, all di ec ly a ec how banks wo k Banks a e
impo an o he economy because hey collec sa ings om people and businesses and gi e
loans o di e en needs. In ecen yea s, Indian banks ha e aced challenges such as dealing
wi h unpaid loans (NPAs) and mo ing owa ds mo e digi al and echnology-based sys ems. The
Union Budge has ied o help by p o iding unds o banks, imp o ing liquidi y, and c ea ing
special loan schemes o mic o, small, and medium en e p ises (MSMEs).
Quick Response Code:
Websi e:
h ps://j d b.o g/
DOI:
10.5281/zenodo.16885235
C ea i e Commons (CC BY-NC-SA 4.0)
This is an open access jou nal, and a icles a e dis ibu ed unde he e ms o he C ea i e Commons
A ibu ion-NonComme cial-Sha eAlike 4.0 In e na ional Public License, which allows o he s o emix,
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Add ess o co espondence:
D . Va sha Rameshwa Bhu ada, Dep . O Comme ce, ACS College, Ganache
How o ci e his a icle:
V. R. Bhu ada, A. P. Ka pe. (2025). The Union Budge Policy Rega ding he Banking Sec o
2025.Jou nal o Resea ch & De elopmen , 17(9(I)),238-240
O iginal A icle
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Maha ash a is one o India’s mos impo an s a es o banking. I has Mumbai, he coun y’s inancial capi al, and also
many u al coope a i e banks ha se e a me s and small businesses. This mix o u ban and u al banking makes
Maha ash a a good place o s udy how budge decisions a ec banks. Howe e , mos esea ch ocuses on he whole
coun y and no on speci ic s a es like Maha ash a.Objec i es o he S udy
1. To assess he ole o he Union Budge in suppo ing inancial inclusion, digi al banking, and p io i y sec o
lending.
2. To s udy he speci ic e ec s o Union Budge policies on he banking sec o in Maha ash a, conside ing bo h
u ban inancial hubs and u al coope a i e banking ne wo ks.
3. To iden i y he challenges aced by banks in implemen ing Union Budge p o isions a he ope a ional le el.
Resea ch Me hodology
This s udy adop s a desc ip i e and analy ical esea ch design o examine he impac o Union Budge 2025
policies on he banking sec o in Maha ash a, wi h a speci ic ocus on inancial inclusion, digi al banking, and p io i y
sec o lending. Union Budge documen s, Rese e Bank o India epo s, NABARD publica ions, s a e-le el banking
s a is ics, and schola ly a icles om pee - e iewed jou nals.
Policy make in he Union Budge 2025-2026 in he banking sec o
1. Financial Inclusion Ini ia i es
• PM SVANidhi Enhancemen : The budge aised he maximum loan limi o s ee endo s o ₹50,000,
in eg a ing digi al epaymen incen i es.
• Ru al Banking In as uc u e: Alloca ions we e made o expand b ick-and-mo a bank b anches in 150
unbanked blocks, many in Maha ash a’s Vida bha and Ma a hwada egions.
• Jan Dhan In eg a ion wi h Insu ance & Pension Schemes: Enhancemen s in PMJJBY and PMSBY we e linked
wi h bank accoun s o deepen inancial sa e y ne s.
2. Digi al Banking Push
• UPI-linked C edi Ca ds: In oduc ion o mic o-c edi acili ies capped a ₹30,000 o low-income households
ia UPI in eg a ion.
• CBDC Expansion: The RBI’s digi al upee pilo is being ex ended o a ge ed u al loca ions, aiming o educe
cash dependence.
• Low-Bandwid h Banking Apps: Designed o ea u e phones, hese apps enable secu e digi al ansac ions in
a eas wi h poo connec i i y.
3. P io i y Sec o Lending
• MSME C edi Gua an ee Scheme: Gua an ee limi s o mic o and small en e p ises doubled o ₹1 c o e and ₹2
c o e espec i ely, wi h lowe gua an ee ees o encou age bank pa icipa ion.
• Ag icul u e & Ru al C edi Ta ge s: NABARD e inance acili ies inc eased, a ge ing ₹20 lakh c o e in u al
lending o FY 2025–26.
• A o dable Housing C edi : Ex ended in e es sub en ion o EWS and LIG ca ego ies unde PMAY.
E ec s on he Banking Sec o in Maha ash a
1) U ban Banking Impac
Mumbai-based banks a e well-posi ioned o adop ad anced digi al pla o ms, bene i ing om budge a y ax
incen i es and in as uc u e g an s. P i a e Banks in he s a e ha e al eady begun pilo p ojec s o block chain-
based loan p ocessing.
2) Ru al and Coope a i e Banking Impac
Coope a i e banks in Vida bha and Ma a hwada s and o bene i om inc eased p io i y sec o unding. Howe e ,
digi al adop ion in u al b anches emains slow due o connec i i y gaps and lack o ained pe sonnel.
3) Challenges in Implemen a ion
In as uc u e Gaps: Ru al a eas in Maha ash a ace poo in e ne connec i i y, limi ing digi al banking adop ion.
• Skill Sho ages: Coope a i e bank s a s a e gene ally a e no skilled in he sense o cybe secu i y wi h also AI-
based sys ems.
• Regula o y Complexi y: O e lap be ween s a e coope a i e laws and na ional banking guidelines delays policy
ollou .
• C edi Risk Managemen : Expanded p io i y sec o lending wi hou adequa e isk assessmen can inc ease NPAs.
Jou nal o Resea ch and De elopmen
Pee Re iewed In e na ional, Open Access Jou nal.
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240
Conclusion
The Union Budge 2025 ein o ces he go e nmen ’s ision o inclusi e, echnology-d i en banking while
p io i izing inancial access and a ge ed lending. In Maha ash a, u ban banks, pa icula ly in Mumbai, a e well-
posi ioned o le e age ini ia i es like UPI-linked c edi and block chain-enabled p ocessing, bene i ing om ad anced
in as uc u e and skilled manpowe . Ru al coope a i e banks, hough suppo ed by inc eased c edi alloca ions and
in as uc u e expansion, ace pe sis en challenges in connec i i y, digi al adop ion, and egula o y alignmen .
B idging his u ban– u al di ide equi es ocused in es men in u al banking in as uc u e, skill de elopmen , and
simpli ied egula o y p ocesses. Only h ough such a ge ed in e en ions can budge a y p o isions ansla e in o
angible imp o emen s ac oss he s a e’s di e se banking landscape. Ul ima ely, sus ained g ow h will depend on
coupling inno a ion wi h ins i u ional capaci y-building, ensu ing equi able bene i s o bo h ad anced u ban
ins i u ions and g ass oo s u al ne wo ks.
Re e ences: -
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h ps://www.ni i.go .in
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