Summary of this article
Finance Ministry urges private banks to expand financial inclusion.
Banks asked to boost digital loans for small businesses.
Lenders told to improve insurance claim awareness and handling.
The Finance Ministry has urged private sector banks to do more to bring small businesses, farmers, street vendors and low-income families into the banking system. The focus is on helping more people access bank accounts, loans, insurance and pension schemes run by the government.
Financial Services Secretary Sanjay Lohiya made the appeal at a meeting with heads of public sector banks (PSBs) and senior officials of major private sector banks. He also asked lenders to take an active part in the financial inclusion campaign scheduled from October 21 to December 31, according to a PTI report.
Private Banks Asked To Expand Scheme Coverage
The meeting reviewed the progress of key government schemes, including the 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).
Other schemes discussed included Stand Up India, PM Street Vendor's Atma Nirbhar Nidhi (PM SVANidhi), PM Vishwakarma, PM Surya Ghar and the Kisan Credit Card scheme.
Lohiya asked private banks to pay more attention to people from weaker sections of society and their banking needs.
The meeting also reviewed plans to open physical bank branches and appoint Banking Correspondents in villages without banking services. Banking Correspondents help people access basic banking services in areas where a bank branch may not be available nearby.
Push For Digital Loans To Small Businesses
The ministry called on banks to reach more customers through digital services and allow borrowers to complete the entire loan process online.
The meeting also discussed measures to provide working capital loans to micro-enterprises through options such as credit lines linked to the Unified Payments Interface (UPI), and credit cards for micro-enterprises (CCME).
Working capital loans aid small businesses in meeting daily expenses, such as buying stock and paying suppliers. Easier access to such credit can help shopkeepers and other small business owners manage their cash needs.
Banks Asked To Help Families Claim Insurance
The ministry asked banks to make people more aware of who can claim benefits under the Jan Suraksha insurance schemes. The aim is to help nominees receive the insurance payout after the death of a beneficiary.
Banks were also asked to handle complaints about insurance claims carefully and address problems faced by families.
The ministry directed banks to register all new beneficiaries under PMJJBY and PMSBY through the Jan Suraksha portal. The portal is due to be linked with banks and insurance companies to improve records and make the process easier to manage.
The meeting also discussed ways to improve the persistency ratio under the Atal Pension Yojana, which measures how many subscribers keep up with their pension contributions over time.
