The Reserve Bank of India is in discussion with the government over the privatisation of public sector banks, governor Shaktikanta Das said on Thursday.

The process is moving ahead, Das commented, when asked about the budget proposal to privatise two state-run lenders.

Delivering the inaugural address at the Times Network India Economic Conclave 2021 in Delhi, Das said the RBI sees the banking landscape divided into four in the future. This will include a few large banks having a pan-India and also foreign presence, some mid-size lenders, small-sized banks and the last category will be digital players.

Emphasizing the importance of digital players in the emerging banking landscape, Das projected India’s FinTech market to grow to Rs 6.2 trillion by 2025, from Rs 1.9 trillion in 2019.

Das said maintaining the banking sector’s health with strong capital base and ethics-driven compliance culture remain policy priority for the RBI.

The RBI has taken a slew of measures to improve governance at the urban cooperative banks, he added.