The Union Budget Policy Regarding the Banking Sector 2025

Abstract The Union Budget 2025 places strong emphasis on three strategic pillars for the banking sector—expanding financial inclusion, accelerating digital transformation, and strengthening priority sector lending. This study evaluates the role of these budgetary measures in shaping banking operations in Maharashtra, a state with a unique dual structure of advanced urban financial hubs and extensive rural cooperative networks. Using a descriptive and analytical approach, the research examines policy initiatives such as PM SVANidhi enhancement, UPI-linked credit cards, CBDC expansion, and increased credit guarantees for MSMEs, alongside their implementation challenges. Findings reveal that while urban banks are well-positioned to adopt digital innovations, rural cooperative institutions face persistent barriers related to infrastructure, skills, and regulatory complexity. The study concludes that bridging the urban–rural divide will require targeted investments in infrastructure, skill development, and streamlined regulations to ensure equitable benefits across the state’s diverse banking ecosystem.