Achieve financial inclusion targets, finance ministry tells PSBs

The finance ministry on Thursday exhorted public sector banks (PSBs) to achieve their financial inclusion targets allotted to them for 2022-23.

In a full day review meeting of heads of Public Sector Banks (PSBs) and financial institutions chaired by Department of Financial Services (DFS) secretary Vivek Joshi, discussions also took place regarding the amendments proposed in Insolvency and Bankruptcy Code (IBC) with regard to reducing the delays in the processes relating to admission, resolution, National Company Law Tribunal’s (NCLT) approval and liquidation. Officials from the Ministry of Corporate Affairs and Insolvency and Bankruptcy Board of India (IBBI) also participated in the meeting.

During the meeting, progress of various social security (Jan Suraksha) schemes, including Pradhan Mantri Jan Dhan Yojana (PMJDY), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY), Atal Pension Yojana (APY), Pradhan Mantri MUDRA and Prime Minister Street Vendor's AtmaNirbhar Nidhi (PMSVANidhi) and agri credit were reviewed.

“It was also discussed that banks should organise financial literacy camps so that awareness about various financial inclusion schemes including micro insurance schemes, digital financial transactions including UPI Lite can be further promoted”, the finance ministry said in a statement.

The statement said that the finance ministry has already requested the Indian Banks’ Association (IBA) to expedite the Consumer Service Rating for all scheduled commercial banks to gauge the consumer expectation and to enable banks to raise their standards of service delivery to every segment of the customer.

In May, Reserve Bank of India (RBI) said it has set up a committee under former deputy governor BP Kanungo to evaluate the efficacy, adequacy and quality of customer service in banks, NBFCs, and other entities regulated by it.

“PSBs were also requested to take help from the PM KISAN database with an aim to provide Kisan Credit Card (KCC) facility to all the farmers in the country. The progress of the Agriculture Infrastructure Fund (AIF) scheme was also reviewed. Officials from the Department of Agriculture & Farmers’ Welfare were also present in the review related to agricultural credit,” the statement added.  

The progress in digitisation of the process for getting the KCC was also discussed to improve the transparency. “PSBs were advised to take necessary steps to digitise the entire journey of KCC loans in a time-bound manner. The digitisation of KCC-Modified Interest Subvention Scheme (MISS) was also discussed and banks were told to start using the portal for their claims from FY22 onwards,” the statement said.

“The progress of the Agriculture Infrastructure Fund (AIF) scheme was also reviewed. Officials from the Department of Agriculture & Farmers’ Welfare were also present in the review related to agricultural credit,” it added.

Agriculture Infra Fund (AIF) is a financing facility launched in 2020 for creation of post-harvest management infrastructure and community farm assets, with benefits including 3 per cent interest subvention and credit guarantee support.