Need For Inclusive Credit Strategies For Unbanked Population: DFS Secretary To Banks

Department of Financial Services (DFS) Secretary M Nagaraju on Monday emphasised the need for inclusive credit strategies for the unbanked population.

Meanwhile, he launched the BAANKNET (Bank Assets Auction Network) mobile app and the Digital Balance Confirmation Platform (DBCP) at the PSB Alliance Annual Strategy Meet 2026.

Speaking at the event, the secretary also emphasised the role of PSB Alliance in contributing positively to the Net Interest Margin (NIM) and cost-to-income ratio of banks.

He advised the PSB Alliance to expand its shared service ecosystem beyond Public Sector Banks (PSBs).

It was also suggested to PSB Alliance to provide common digital lending solutions to smaller banks, helping them to save overhead costs.

It was noted that while BAANKNET has already brought structure and transparency to bank auction properties, the new mobile app will make access to verified bank properties truly nationwide and accessible on the go, the finance ministry said in a statement.

This will empower common citizens and support banks in achieving faster recoveries, it said.

Regarding the DBCP, the platform marks a significant step towards greater efficiency and transparency in the audit process, with the ultimate goal of eliminating manual balance confirmation certificates altogether, it said.

Earlier speaking at a post-budget CII event, Nagaraju said key focus areas would include expanding access to credit given the fact that India's credit to GDP ratio is currently one of the lowest in the world, encouraging banks to become bigger, and strengthening their financial capacity to support large corporate financing for the proposed High-Level Committee on Banking for Viksit Bharat announced in the Budget.

Acknowledging the critical role played by NBFCs in meeting the country's diverse financing needs, the secretary said that there is a significant headroom for the sector's growth, positioning it as a vital pillar in mobilising capital and supporting the financing requirements of a Viksit Bharat by 2047.

Speaking about the health of banks, he said, the Indian banking sector is now very robust and is doing very well with NPA declining to 0.47, credit growth of around 12 per cent and the deposit growth of 10 per cent.