Finance Ministry Reviews Progress of Financial Inclusion Schemes with Private Banks

The Secretary of the Department of Financial Services (DFS) recently held a meeting with the senior management of private sector banks to review how well they are implementing various government financial inclusion schemes. The meeting was also attended by the CEO of the Indian Banks’ Association (IBA) and senior officials from DFS.

Usually, public sector banks take the lead in implementing government schemes, while private sector banks contribute very little. Now, the government wants private banks to actively participate just like public sector banks and help ensure these schemes are successfully implemented across the country.

Schemes Discussed in the Meeting

The following major schemes were reviewed:

• PMJDY – Pradhan Mantri Jan Dhan Yojana (basic savings accounts for all)
• PMJJBY – Pradhan Mantri Jeevan Jyoti Bima Yojana (life insurance)
• PMSBY – Pradhan Mantri Suraksha Bima Yojana (accident insurance)
• APY – Atal Pension Yojana (pension for unorganized sector)
• PMMY – Pradhan Mantri Mudra Yojana (loans to small businesses)
• PM Vishwakarma – Scheme to support traditional artisans and craftsmen

Key Directions Given to Private Banks

The Government of India has given certain instructions to private banks to ensure implementation of government schemes. Some of the instructions are as follows:

1. Participate More Actively in Government Schemes
   • The Secretary asked private sector banks to increase their role in promoting and implementing these important financial inclusion schemes.
2. Faster Claim Settlements under Insurance Schemes
   • Banks were directed to ensure quick and smooth settlement of insurance claims under the PMJJBY and PMSBY schemes to support families in need.
3. Improve Banking Access in Rural and North-East India
   • The Secretary highlighted the need to expand banking infrastructure in rural areas and the North-Eastern region, where banking services are still limited.

Special Focus: 3-Month Financial Inclusion Saturation Campaign

Banks were urged to actively support a 3-month campaign running from July 1 to September 30, 2025, which will focus on covering all Gram Panchayats across the country. The main activities in the Campaign will be as follows:

• Re-KYC (Know Your Customer) for savings accounts that need updating.
• Opening new PMJDY accounts for people who don’t have bank accounts.
• Enrolling more people under government-backed insurance and pension schemes.

The government wants private sector banks to play a bigger role in making sure that every citizen, especially in villages and remote areas, has access to banking and financial security. This includes having a bank account, insurance coverage, and a pension plan.