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New Delhi: The Union Finance Ministry will hold a high-level review meeting on Thursday with public sector banks (PSBs) and a few private sector banks to assess the progress of government-run schemes and the performance of the National Asset Reconstruction Company Limited (NARCL), according to a senior government official.
The meeting will be chaired by Department of Financial Services (DFS) Secretary M Nagaraju and will be attended by PSB chiefs along with the heads of ICICI Bank, HDFC Bank, Axis Bank, and IndusInd Bank.
What will happen in meeting?
This meeting will focus on following matters:
Review of government schemes, including:
- Credit Guarantee Fund Scheme for Skill Development (CGFSSD)
- MUDRA Loan for Homestays
- Pradhan Mantri Matsya Kisan Samridhi Sah-Yojana (PM-MKSSY)
- Kisan Credit Card (KCC)
- Fisheries and Aquaculture Infrastructure Development Fund (FIDF)
Assessment of Budget 2025-26 Announcements, focusing on:
- MSME credit acceleration
- PM Vidya Lakshmi Scheme (education loans)
- PM-KUSUM (solar-powered farming solutions)
- PM Surya Ghar Muft Bijli Yojana (free electricity for rural households)
The last such review meeting was conducted in December 2024 with PSB heads and the DFS secretary.
NARCL’s Role in Resolving NPAs
Formed in July 2021, NARCL was established to resolve non-performing assets (NPAs) in the banking sector. As of December 2024, it has acquired 22 accounts with an exposure of ₹95,711 crore. Additionally, 28 accounts worth ₹1.28 trillion have been settled by banks following NARCL’s intervention, demonstrating its significant role in the recovery of bad loans.
About the Key Schemes Under Review:
CGFSSD: Provides credit guarantees to financial institutions offering loans to skill development training institutes, increasing funding access for trainers and trainees.
PM-MKSSY: Supports fishermen by enhancing infrastructure, technology, and financial aid, promoting sustainable fishing practices and boosting fish production.
KCC: Offers farmers easy access to credit for agriculture-related expenses, ensuring financial support for their needs.
FIDF: Focuses on developing fisheries sector infrastructure to improve production and sustainability.
PM Vidya Lakshmi Scheme: Provides financial aid for students pursuing higher education in India and abroad, with easier loan terms and faster processing.
PM-KUSUM: Aims to reduce dependency on conventional energy by helping farmers install solar-powered pumps and grid-connected solar power systems.
PM Surya Ghar Muft Bijli Yojana: Provides free electricity connections to rural and economically weaker households, improving access to essential power services.
The meeting is expected to assess progress, identify challenges, and accelerate the implementation of these key government initiatives.
