Govt asks private lenders to boost participation in financial inclusion schemes

In a decisive move to deepen the reach of banking and financial services across India, the Union Finance Ministry has urged private sector banks to step up their involvement in government-led financial inclusion schemes. This call to action was made during a high-level review meeting held in New Delhi, chaired by Financial Services Secretary M. Nagaraju.
Review of Performance Across Key Schemes
The review meeting assessed the performance of private banks in implementing several flagship financial inclusion programs. These included:
Pradhan Mantri Jan Dhan Yojana (PMJDY)
Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
Pradhan Mantri Suraksha Bima Yojana (PMSBY)
Atal Pension Yojana (APY)
Pradhan Mantri Mudra Yojana (PMMY)
Stand Up India
PM Street Vendor's AtmaNirbhar Nidhi (PM SVANidhi)
PM Vishwakarma
The ministry also reviewed the progress on two critical infrastructural components: opening brick-and-mortar branches and deploying Banking Correspondents in unbanked villages.
Support for the Marginalized
The Finance Ministry emphasized the need for private banks to play a more proactive role in serving the marginalized and underbanked segments of society. Secretary Nagaraju underscored the importance of fast-tracking claim settlements under the Jansuraksha schemes and increasing banking infrastructure in rural and north-eastern regions. These measures are vital to ensuring that financial benefits reach every citizen, especially those in remote areas.
Participation in Financial Inclusion Saturation Campaign
Banks were also encouraged to actively participate in the three-month financial inclusion saturation campaign, scheduled from 1 July to 30 September, which targets 100% saturation of financial services in all village panchayats across the country.
Stakeholders Present
The meeting witnessed the participation of senior officials from private sector banks, Indian Banks’ Association CEO Atul Kumar Goel, and senior officers from the Department of Financial Services.
A Call to Action
The message from the Finance Ministry was clear: while significant progress has been made in expanding financial access, the private banking sector must ramp up its efforts to bridge the remaining gaps. As the government continues to push the boundaries of financial inclusion, the involvement of all banking stakeholders is critical for building a more inclusive and equitable financial ecosystem in India.