The Department of Financial Services (DFS) secretary Sanjay Lohiya instructed banks to enhance digital lending and broaden financial inclusion efforts during a review meeting held on Tuesday in New Delhi. The directive focused on expanding end-to-end online loan processing and increasing credit access for micro-enterprises, according to a finance ministry statement.
The meeting involved heads of public-sector banks and executive directors of major private-sector banks. Lohiya emphasized the need to leverage channels like credit lines on the Unified Payments Interface (UPI) and credit cards to provide working-capital loans to micro-enterprises. He also urged private-sector banks to increase their participation in government financial inclusion schemes such as the Pradhan Mantri Jan Dhan Yojana and Pradhan Mantri Mudra Yojana.
The review covered progress under several social welfare schemes including Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY), and Atal Pension Yojana. Banks were directed to improve awareness about claim eligibility under the Jan Suraksha insurance schemes and to address grievances related to claims. Additionally, all new PMJJBY and PMSBY beneficiaries must be enrolled through the Jan Suraksha portal, which will be integrated with banks and insurers to enhance data quality.
The finance ministry statement highlighted that these measures aim to move financial inclusion beyond merely opening accounts, focusing on digital outreach and credit accessibility. The Jan Suraksha portal integration is expected to streamline beneficiary data and claims processing across all participating banks and insurers.