The debate will surely center around the Budget 2024-25 bringing sweeping changes in banking sector. Therefore, measuring financial stability with growth key areas of impact include:

1. Capital Infusion: The government is likely to inject fresh capital in the public sector banks making them healthier and able to lend more aggressively
2. Digital Banking- This option is to provide more money for the digital infra and fi-tech solutions to seek better financial inclusion And make banking services a lot of efficient.
3. NPA Management Measures: NPA resolution mechanisms may be enhanced, including insolvency and asset reconstruction.
4. Financial Inclusion: Funding for programs that seek to expand provision of bank services in rural and underserved regions could also increase, accompanied with strategic initiatives.
5. Green Financing – This will incentivize banks to fund green and sustainable projects, dovetailing with the wider environmental objectives

The Reserve Bank of India’s (RBI) monetary policy, too, might change in line with the budget. If the budget brings about a large uplift in spending, it could end up spooking India’s inflation-wary central bank into tightening monetary policy. On the other hand, measures that promote credit growth may be more accommodative. It may be complemented with regulatory changes to bolster digital banking and support the regulations for fintech and digital currencies. Over all, the budget is likely to chart a middle path between promoting growth and ensuring financial stability – which will consequently guide RBI on policy direction.