Banks Urged to Boost Digital Outreach and Loan Processing
DFS Secretary Sanjay Lohiya calls for end-to-end digital loan processing and expanded digital outreach to boost financial inclusion in India.
In a major push to deepen financial inclusion across India, the Department of Financial Services (DFS) has called upon both public and private sector banks to aggressively expand their digital footprints. During a high-level review meeting in New Delhi on Tuesday, DFS Secretary Sanjay Lohiya emphasized the need for end-to-end digital processing of loans to streamline credit access for citizens.
Review of Major Financial Inclusion Schemes
Secretary Lohiya chaired a comprehensive session with the heads of all public sector banks and executive directors from major private sector institutions. The primary objective was to assess the progress of several flagship government initiatives designed to bring banking services to the doorstep of every Indian. The review covered a wide array of schemes, including:
- Pradhan Mantri Jan Dhan Yojana
- Pradhan Mantri Mudra Yojana
- Stand Up India
- PM Vishwakarma and PM Surya Ghar
- Atal Pension Yojana
- Kisan Credit Card
- PM Street Vendor's Atma Nirbhar Nidhi
- Pradhan Mantri Jeevan Jyoti Bima Yojana and Pradhan Mantri Suraksha Bima Yojana
The Ministry of Finance stated that the meeting also evaluated the expansion of physical infrastructure, specifically the opening of brick-and-mortar branches and the deployment of Banking Correspondents in villages that currently lack banking access.
Focus on Digital Credit and Micro-Enterprises
A key takeaway from the meeting was the transition toward more sophisticated digital tools for lending. Lohiya highlighted that while traditional schemes have made significant strides, the next frontier is strengthening digital outreach.
To support micro-enterprises, the DFS discussed leveraging modern payment ecosystems. Specifically, the meeting explored providing working capital through innovative channels such as credit lines on UPI and credit cards, ensuring that small business owners can access liquidity with minimal friction.
Improving Insurance Claims and Data Integration
The DFS Secretary also issued specific directives regarding the government's Jansuraksha insurance schemes. To ensure that families are not left stranded, banks were urged to:
- Improve public awareness regarding claim eligibility under PMJJBY and PMSBY.
- Pay closer attention to resolving grievances related to insurance claims.
- Ensure all new beneficiaries are enrolled through the Jan Suraksha portal.
The Jan Suraksha portal is set to be integrated with all banks and insurers, a move expected to enhance data quality and simplify operational workflows. Additionally, banks were tasked with improving the persistency ratio under the Atal Pension Yojana to ensure long-term stability for retirees.
Call for Private Sector Participation
While acknowledging the progress made by public sector entities, Lohiya made a direct appeal to private sector banks to increase their involvement in financial inclusion efforts. He underscored the importance of the upcoming Financial Inclusion Saturation Campaign, scheduled to run from October 21 to December 31, 2026.
This campaign will place a heavy emphasis on serving the most marginalized sections of society, ensuring that their specific banking needs are met and that no citizen is left behind in India's evolving financial landscape.