New Delhi, Nov. 6 -- Finance minister Nirmala Sitharaman said on Thursday that India requires large, world-class banks to support the massive capital needs of a fast-growing economy, signalling a renewed push for consolidation and expansion in the country's financial sector.

The government has begun discussions with the Reserve Bank of India (RBI) and commercial lenders on how to shape the next phase of India's banking evolution, she said.

"India needs a lot of big banks, world-class banks," Sitharaman said at the 12th State Bank of India (SBI) Banking and Economics Conclave in Mumbai.

"For that, we will have to sit and talk with the Reserve Bank and with the banks themselves to see how they want to take it forward...The work has alrea...