DFS Secretary Reviews Financial Inclusion Progress with Bank Heads, Emphasizes Expansion in Unbanked Areas

Shri Nagaraju highlighted the need to sustain the momentum in bringing more citizens under the ambit of financial inclusion through dedicated implementation of these schemes.

Shri M. Nagaraju, Secretary of the Department of Financial Services (DFS), Ministry of Finance, chaired a comprehensive review meeting in New Delhi today, attended by heads of Public Sector Banks (PSBs), Managing Directors, CEOs, and senior officers of private sector banks. Senior executives from Small Industries Development Bank of India (SIDBI), Mudra Ltd, the Indian Banks’ Association (IBA), and the National Credit Guarantee Trustee Company (NCGTC) also participated, with many joining virtually.

The meeting centered on evaluating the performance of flagship financial inclusion schemes, including:

• Pradhan Mantri Jan Dhan Yojana (PMJDY): Reviewing its role in promoting bank account access and financial literacy.
• Social Security Initiatives: Performance under Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY), and Atal Pension Yojana (APY).
• Entrepreneurial Support Schemes: Progress under Pradhan Mantri Mudra Yojana (PMMY), Stand-Up India, and the newly introduced PM Vishwakarma Yojana, which focuses on empowering traditional artisans and craftspeople.

Shri Nagaraju highlighted the need to sustain the momentum in bringing more citizens under the ambit of financial inclusion through dedicated implementation of these schemes.

Augmenting Banking Infrastructure in Unbanked and Remote Areas

A significant portion of the meeting addressed the progress in opening brick-and-mortar branches in unbanked villages. Shri Nagaraju emphasized the urgent need to expand banking infrastructure in remote and underdeveloped areas, especially in the North Eastern States and far-flung regions.

Acknowledging challenges such as connectivity and infrastructure gaps, he called for innovative solutions to overcome these barriers. He stressed the importance of collaboration between banks and local administrations to facilitate smoother operations and better outreach in these areas.

Social and Economic Upliftment Through Targeted Lending

Shri Nagaraju urged banks to meet their targets under the MUDRA Scheme, which focuses on providing microcredit to small and medium entrepreneurs. Additionally, he stressed extending loans to SC/ST entrepreneurs under the Stand-Up India Scheme, aiming to bolster economic inclusion and empower disadvantaged communities.

Achievements and Future Goals

Reflecting on the significant progress made in expanding financial inclusion and social security coverage, Shri Nagaraju called on both public and private sector banks to continue their efforts. He encouraged innovative strategies to bring underserved populations into the formal banking system, fostering financial independence and socio-economic development.

Additional Highlights and Directions

1. Improving Loan Accessibility for Artisans: Focus on integrating artisans and craftspeople into the financial system under the PM Vishwakarma Yojana.
2. Encouraging Digital Banking: Expand digital banking services in areas with limited infrastructure, leveraging mobile and internet banking to bridge accessibility gaps.
3. Empowering Women Entrepreneurs: Enhance outreach and credit availability for women under PMMY and Stand-Up India initiatives.

Shri Nagaraju concluded the meeting by reinforcing the Government’s commitment to financial empowerment for all and urged banks to work collaboratively toward achieving these goals.

This strategic engagement sets the stage for accelerating financial inclusion and further strengthening the socio-economic fabric of the country.