Mumbai, Jul 19 (IANS): Public sector banks will identify one district in each state to make it 100 per cent digitally enabled within one year, the Reserve Bank of India said on Friday.

The development comes after RBI Governor Shaktikanta Das met with the CEOs of the public sector banks and the Chief Executive of Indian Banks Association (IBA).

According to the RBI, the governor underlined the importance of expanding and deepening digital payments ecosystem in line with the recommendations of the report of the Committee on Deepening of Digital Payments and Reserve Bank's Payment System Vision Document 2021.

"In this context, on the suggestion of the governor, it was agreed that banks will identify one district in each state to make it 100 per cent digitally enabled within a time frame of one year in close co-ordination and collaboration with all stakeholders, including SLBCs, state governments, regional offices of RBI, etc," the apex bank said in a statement.

"To the extent feasible, such districts may be converged with the 'Transformation of Aspirational Districts' programme of the Government of India. IBA is also expected to play a catalytic role in this regard."

As per the statement, the RBI Governor in his opening remarks acknowledged "discernible improvements in the banking sector while underscoring that several challenges still remain to be addressed, particularly with regard to the stressed asset resolution and credit flows to needy sectors".