Finance Ministry asks private banks to increase participation in financial inclusion schemes

Representational Image. File pic.

The Finance Ministry on Tuesday urged private sector banks to increase their participation in financial inclusion schemes including Pradhan Mantri Mudra Yojana (PMMY) and Stand Up India.

Chairing a review meeting with heads of all Public Sector Banks (PSBs) and senior officials of major private sector banks (PVBs), Financial Services Secretary Sanjay Lohiya urged banks to participate wholeheartedly in the forthcoming Financial Inclusion saturation campaign from October 21 to December 31.

Lohiya asked private sector banks to give more thrust to serving marginalised sections of society and fulfilling their banking needs.

During the meeting, a detailed review of the progress under various Financial Inclusion schemes including Pradhan Mantri Jan Dhan Yojana (PMJDY), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY), Atal Pension Yojana (APY) and Pradhan Mantri Mudra Yojana (PMMY), the finance ministry said in a statement.

The meeting also reviewed progress on Stand Up India, PM Street Vendor's Atma Nirbhar Nidhi (PM SVANidhi), PM Vishwakarma, PM Surya Ghar, and Kisan Credit Card, it said.

The progress of opening brick-and-mortar branches of banks and deployment of Banking Correspondents in unbanked villages was also reviewed, it said.

While significant progress has been made in deepening financial inclusion in the country through various flagship schemes of the government, banks should make efforts for further enhancing their digital outreach and focus on end-to end digital processing of loans, Lohiya said at the meeting.

Providing working capital loans through channels like credit lines on UPI and credit cards for micro-enterprises (CCME) was also explained, it said.

Lohiya urged private sector banks to increase their participation in financial inclusion schemes.

During the meeting, the Secretary directed private sector banks to increase awareness of claim eligibility in Jansuraksha insurance schemes so that the nominees receive the amount after the unfortunate demise of the beneficiary.

Banks were also advised to take specific care while handling grievances related to claims under these schemes.

He also asked banks to enrol all new beneficiaries of PMJJBY & PMSBY through the Jan Suraksha portal as the portal will be integrated with all banks and insurers, thereby enhancing the quality of data and ease of operations.

During the meeting, ways to increase the persistency ratio of the Atal Pension Yojana were also discussed.

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