Banks urged to expand digital outreach, end-to-end loan processing: DFS Secretary

New Delhi [India], October 6 (ANI): The Department of Financial Services (DFS) has urged public and private sector banks to expand their digital outreach and focus on end-to-end digital processing of loans as the government seeks to deepen financial inclusion across the country.
DFS Secretary Sanjay Lohiya chaired a review meeting with heads of all public sector banks and executive directors of major private sector banks in New Delhi on Tuesday to assess progress under various financial inclusion schemes.
The meeting reviewed the implementation of schemes including Pradhan Mantri Jan Dhan Yojana, Pradhan Mantri Jeevan Jyoti Bima Yojana, Pradhan Mantri Suraksha Bima Yojana, Atal Pension Yojana, Pradhan Mantri Mudra Yojana, Stand Up India, PM Street Vendor's Atma Nirbhar Nidhi, PM Vishwakarma, PM Surya Ghar and Kisan Credit Card.
Progress in opening brick-and-mortar bank branches and deploying Banking Correspondents in unbanked villages was also reviewed, the Ministry of Finance said in a statement.
Lohiya said that while significant progress had been made in expanding financial inclusion through flagship government schemes, banks should further strengthen digital outreach and focus on end-to-end digital processing of loans.
The meeting also discussed providing working capital loans through channels such as credit lines on UPI and credit cards for micro-enterprises. Lohiya also urged private sector banks to increase their participation in financial inclusion schemes.
The DFS Secretary directed banks to improve awareness about claim eligibility under the government's Jansuraksha insurance schemes to ensure that nominees receive benefits following the death of beneficiaries. Banks were also advised to pay specific attention to grievances relating to claims under these schemes.
Banks were further asked to enrol all new beneficiaries under PMJJBY and PMSBY through the Jan Suraksha portal. The ministry said the portal will be integrated with all banks and insurers, which is expected to improve data quality and ease of operations.
The meeting also discussed measures to improve the persistency ratio under the Atal Pension Yojana.
Lohiya urged banks to participate fully in the upcoming Financial Inclusion saturation campaign from October 21 to December 31, 2026, with greater focus on serving marginalised sections of society and addressing their banking needs. (ANI)