Finance Ministry Asks Private Banks To Step Up Financial Inclusion, MSME Lending

New Delhi, Oct 7 (KNN) The Finance Ministry on Tuesday urged private sector banks to increase their participation in financial inclusion schemes, including the Pradhan Mantri Mudra Yojana and Stand-Up India.

Financial Services Secretary Sanjay Malhotra Lohiya made the appeal while chairing a review meeting with heads of public sector banks and senior officials of major private sector lenders.

Lohiya urged private banks to participate actively in the upcoming financial inclusion saturation campaign, scheduled from October 21 to December 31, and give greater attention to the banking needs of marginalised sections, reported ANI.

The meeting reviewed progress under key financial inclusion schemes, including the Pradhan Mantri Jan Dhan Yojana, Pradhan Mantri Jeevan Jyoti Bima Yojana, Pradhan Mantri Suraksha Bima Yojana, Atal Pension Yojana and Pradhan Mantri Mudra Yojana, the ministry said in a statement.

Progress under Stand-Up India, PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi), PM Vishwakarma, PM Surya Ghar and Kisan Credit Card schemes was also reviewed.

The meeting also assessed the expansion of brick-and-mortar bank branches and deployment of banking correspondents in unbanked villages.

Lohiya said banks should further expand their digital outreach and focus on end-to-end digital processing of loans. The meeting also discussed providing working capital to micro enterprises through channels such as credit lines on UPI and credit cards.

Private sector banks were asked to improve awareness among beneficiaries about claim eligibility under the Jan Suraksha insurance schemes and ensure grievances related to claims are addressed effectively.

Banks were also advised to enrol all new beneficiaries under PMJJBY and PMSBY through the Jan Suraksha portal, which is set to be integrated with banks and insurers to improve data quality and operational efficiency.

The meeting also discussed measures to improve the persistency ratio under the Atal Pension Yojana.

(KNN Bureau)