New Delhi: The Centre is pushing banks to move financial inclusion beyond opening accounts, asking them to expand digital outreach, process loans end-to-end online and widen access to credit for micro-enterprises.
Department of financial services (DFS) secretary Sanjay Lohiya gave the instructions on Tuesday at a review meeting with the heads of public-sector banks and executive directors of major private-sector banks in New Delhi, according to a finance ministry statement.
The meeting reviewed progress under several financial inclusion schemes, including the Pradhan Mantri Jan Dhan Yojana, Pradhan Mantri Jeevan Jyoti Bima Yojana (), Pradhan Mantri Suraksha Bima Yojana (PMSBY), Atal Pension Yojana and Pradhan Mantri Mudra Yojana.
Lohiya also discussed providing working-capital loans through channels such as credit lines on (Unified Payments Interface) and credit cards for micro-enterprises. He urged private-sector banks to increase their participation in financial inclusion schemes.
Banks were asked to improve awareness of claim eligibility under the Jan Suraksha insurance schemes so nominees receive benefits after the death of a beneficiary. They were also advised to give specific attention to grievances related to claims under the schemes, according to the statement.
The banks were asked to enrol all new PMJJBY and PMSBY beneficiaries through the Jan Suraksha portal. The ministry said the portal will be integrated with all banks and insurers to improve data quality and ease operations.
The meeting also reviewed ways to improve the persistency ratio of the Atal Pension Yojana, as well as progress in opening brick-and-mortar bank branches and deploying banking correspondents in unbanked villages.
The government’s financial inclusion push is built around schemes intended to expand access to banking, insurance, pensions and credit.
At its core is the Pradhan Mantri Jan Dhan Yojana, launched in August 2014 as the National Mission for Financial Inclusion. It aims to provide every unbanked adult a basic savings bank account with no minimum balance requirement, a free RuPay debit card carrying accident insurance cover, an overdraft facility of up to ₹10,000, and access to direct benefit transfers.
A recent Press Information Bureau release said that, as of 19 August, more than 590 million Jan Dhan accounts had been opened, with 56% held by women and a substantial majority in rural and semi-urban areas. in these accounts exceeded ₹3.17 trillion.
The Jan Suraksha schemes—PMJJBY and PMSBY—extend the platform into affordable insurance. PMJJBY provides ₹2 lakh of life cover to individuals aged 18–50 for an annual premium of ₹436. PMSBY provides ₹2 lakh of accidental-death or total-disability cover, and ₹1 lakh for partial disability, to people aged 18–70 for ₹20 a year.
Atal Pension Yojana provides a guaranteed monthly pension of ₹1,000 to ₹5,000 after age 60 to unorganized sector workers who join between ages 18 and 40.
Credit include Pradhan Mantri Mudra Yojana, which provides collateral-free loans of up to ₹20 lakh to micro and small enterprises, and Stand-Up India, which provides loans of ₹10 lakh to ₹1 crore to SC/ST and women entrepreneurs.
Lohiya also urged banks to participate in the forthcoming financial inclusion saturation campaign, scheduled from 21 October to 31 December, and to give greater attention to marginalized sections and their banking needs.
Together, these initiatives are anchored by the JAM framework—Jan Dhan, Aadhaar and mobile—which the government uses to expand access to banking, insurance, pensions and credit.
