Finmin asks banks to expand their network in north-eastern states

Chairing a meeting to review the progress of Schemes of Financial Inclusion with Public Sector Banks PSBs and major private banks, he also reviewed the progress of opening of brick mortar branches of banks in unbanked villages.

Financial Services Secretary M Nagaraju on Wednesday asked banks to expand their network in those villages identified for branch expansion, especially in north-eastern states. Chairing a meeting to review the progress of Schemes of Financial Inclusion with Public Sector Banks (PSBs) and major private banks, he also reviewed the progress of opening of brick & mortar branches of banks in unbanked villages. If there are issues related to infrastructure or network connectivity, the banks should work jointly with the state governments and the respective State Level Bankers Committee to resolve such issues, he said. He also emphasised that physical bank branches should be complemented by digital banking infrastructure with assisted modes and vernacular language availability, for last-mile reach. Similarly, the importance of deployment of banking correspondents in unbanked villages was also taken up with banks, the finance ministry said in a statement. During the meeting, bank-wise progress under various financial inclusion 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 Yojana (PMMY), PMSVANidhi, PM Vishwakarma and PM SuryaGhar Muft Bijlee Yojana, were reviewed. While reviewing the progress, Nagaraju acknowledged the efforts made by banks in the area of financial inclusion. He lauded the MUDRA scheme as one of the most successful financial inclusion programmes globally and noted that the scheme has empowered individuals in rural and semi-urban areas to emerge as new business owners, encouraging entrepreneurship and reducing dependence on informal lending channels, as more people now directly approach banks for credit. During the meeting, strategies and a way forward for achieving the goals for FY 2026-27 was discussed in detail, it said. Nagaraju also exhorted private banks to give more thrust on serving the marginalised sections of society and fulfilling their banking needs, and participate fully in the various forums like SLBC/DCC/DLCC to ensure meaningful financial inclusion.