Banks Urged to Enhance Digital Reach and Streamline Loan Processes, Says DFS Secretary

New Delhi, October 6 (Daily Kiran) : The Secretary of the Department of Financial Services (DFS), Sanjay Lohiya, emphasized the importance of enhancing digital access and fully digitizing loan processes during a meeting held in New Delhi on Tuesday. He pointed out that while significant progress has been made in promoting financial inclusion through various government initiatives, banks must focus on these areas to ensure wider access.

Lohiya chaired a review meeting with heads of public sector banks (PSBs) and executive directors from major private sector banks (PVBs). Senior officials from the DFS were also in attendance. The discussions included the introduction of UPI-based credit lines and credit cards for micro-enterprises, aimed at providing easy and quick loans to small businesses.

During the meeting, Lohiya reviewed the progress made by banks in financial inclusion initiatives and urged private sector banks to increase their participation in these programs. He instructed banks to raise awareness about eligibility for claims under public safety insurance schemes, ensuring timely disbursement of claim amounts to beneficiaries in unfortunate circumstances.

He also stressed the need for careful handling of complaints related to these schemes, ensuring that claims are resolved swiftly. Furthermore, Lohiya directed banks to register all new beneficiaries under the Prime Minister’s Jeevan Jyoti Bima Yojana (PMJJBY) and the Prime Minister’s Suraksha Bima Yojana (PMSBY) through the public safety portal, which will be integrated with all banks and insurance companies to improve data quality and operational efficiency.

The meeting also reviewed measures to enhance the persistence ratio of beneficiaries in the Atal Pension Yojana (APY) and discussed the progress of various key government schemes. These include the Pradhan Mantri Jan Dhan Yojana (PMJDY), PMJJBY, PMSBY, APY, Pradhan Mantri Mudra Yojana (PMMY), Stand-Up India, PM Svanidhi, PM Vishwakarma, PM Surya Home Scheme, and the Kisan Credit Card (KCC).

Additionally, the progress of expanding bank branches and deploying business correspondents in unbanked villages was reviewed. The government’s aim is to ensure banking services reach every corner of the country and to further strengthen digital financial inclusion.