The central government has urged private sector banks to increase their involvement in key financial inclusion programmes such as Jan Suraksha schemes and to play a more proactive role in State Level Bankers’ Committees (SLBCs), particularly in resolving issues faced by micro and small enterprises and expanding credit outreach.
Government Flags Low Private Bank Engagement
In a recent high-level review meeting chaired by Financial Services Secretary M. Nagaraju, concerns were raised over the limited participation of private sector banks in schemes where they hold leadership responsibilities. “It was observed that where some private banks are lead banks in some schemes and programmes, they have not been actively engaging with other stakeholders, which leads to low participation,” said an official aware of the developments.
To address the issue, the government has also asked the Indian Banks’ Association (IBA) to take up the matter directly with the concerned banks.
PSBs Continue to Anchor Financial Inclusion
A senior executive from a public sector bank (PSB) noted that PSBs have traditionally carried the weight of financial inclusion. “We are government-owned, and it’s also our social responsibility, but if pursued correctly, it can be viable, as reflected in PMJDY accounts, which are low-cost deposits,” the executive said.
Currently, nearly 5.6 million accounts have been opened under the Pradhan Mantri Jan Dhan Yojana (PMJDY), holding a combined balance of ₹2.61 lakh crore. More than 55% of these accounts belong to women.
July-September: Nationwide Campaign Underway
To strengthen outreach, the Centre launched a nationwide three-month campaign starting July 1 to promote adoption of schemes such as Jan Dhan Yojana, Jeevan Jyoti Bima Yojana (PMJJBY), Atal Pension Yojana (APY), and Suraksha Bima Yojana (PMSBY).
According to the finance ministry, the first month of the campaign saw:
- 1.05 lakh financial inclusion camps across gram panchayats
- Over 6 lakh new PMJDY accounts opened
- 7 lakh enrolments under PMJJBY
- 12 lakh enrolments under PMSBY
- 3 lakh new subscribers to APY
- Re-KYC completed for more than 14.2 lakh bank accounts
During the June review meeting with private bank executives, Nagaraju had also stressed the importance of faster claim settlement under Jan Suraksha schemes and improvement of banking infrastructure in rural and Northeastern regions.
Looking Ahead
The government appears intent on making financial inclusion a truly shared responsibility between public and private sector lenders. With targeted engagement, infrastructure augmentation, and a sharper focus on rural outreach, the coming months will test whether private banks step up to the challenge.
