Secretary DFS Urges Public Sector Banks to Strengthen Digital, Financial, and Inclusive Frameworks

A significant portion of the meeting focused on aligning cybersecurity practices with global standards to ensure customer protection and uninterrupted service.

Today, Shri M. Nagaraju, Secretary of the Department of Financial Services (DFS), chaired an extensive review meeting with Managing Directors and CEOs of Public Sector Banks (PSBs) to assess their progress across multiple areas critical to India’s economic resilience and growth. The agenda included an in-depth evaluation of PSBs' financial soundness, digital transformation efforts, cybersecurity readiness, customer-focused initiatives, and targeted support for priority sectors, including agriculture, Micro, Small & Medium Enterprises (MSMEs), and key financial inclusion programs.

During the discussions, Shri Nagaraju highlighted the need for PSBs to solidify their financial and operational frameworks in response to changing market dynamics and increasing cybersecurity threats. Acknowledging recent financial achievements, he underscored the importance of further enhancing PSB resilience through strong asset and liability management, improved digital payment infrastructure, and an expanded focus on CASA deposits to sustain credit growth.

A significant portion of the meeting focused on aligning cybersecurity practices with global standards to ensure customer protection and uninterrupted service. PSBs were encouraged to leverage advanced digital innovations, particularly in customer onboarding processes, to streamline operations and improve accessibility.

Shri Nagaraju also emphasized the critical role of PSBs in the government's flagship financial inclusion schemes, including Pradhan Mantri Jan Dhan Yojana (PMJDY), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), and Pradhan Mantri Mudra Yojana (PMMY), among others. He urged banks to prioritize reaching underserved populations, and extending the availability of financial services and credit access to marginalized communities.

Further, the DFS Secretary stressed the need for improved HR practices to ensure workforce quality, motivation, and alignment with the best industry standards. He encouraged PSBs to enhance technological capabilities, adopt responsible banking practices, and prioritize timely resolution of customer grievances to improve overall customer satisfaction.

In conclusion, Shri Nagaraju’s directives positioned PSBs as pivotal players in advancing India’s financial inclusivity, cybersecurity, and digital banking frontiers, as they continue to support sustainable economic growth and financial empowerment for all sections of society.