PSBs to focus on accelerating pace of lending to agriculture & MSMEs

“Shri M. Nagaraju, Secretary of Department of Financial Services, Leads Review Meeting with Public Sector Banks”On November 5, 2024, Shri M. Nagaraju, Secretary of the Department of Financial Services (DFS), chaired a review meeting with the Managing Directors and CEOs of Public Sector Banks (PSBs) to assess their performance across critical areas, including financial stability, digital initiatives, cybersecurity, customer-focused practices, and support for priority sectors like agriculture, MSMEs, and government financial inclusion schemes.

Shri Nagaraju emphasized the importance of prompt and effective grievance redressal by PSBs to enhance customer satisfaction. He stressed that PSBs should align their digital and cybersecurity frameworks with industry standards to ensure customer protection and operational continuity. Additionally, he underscored the need for PSBs to invest in technology and data analytics to build customized support systems and to foster collaborations in emerging sectors.

The Secretary urged PSBs to accelerate lending, especially to agriculture and MSMEs, and to strengthen financial inclusion. He reviewed progress under key government 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), Stand Up India, PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi), PM Vishwakarma, and PM Surya Ghar Yojana, which aim to boost access to credit and empower economically vulnerable populations.

He further discussed the importance of Current Account Savings Account (CASA) deposits, advising PSBs to mobilize these deposits to support sustainable credit growth. Shri Nagaraju highlighted the need for PSBs to enhance credit support for MSMEs and simplify customer onboarding through digital innovations. He also encouraged PSBs to adopt the best human resource practices within the industry to foster employee well-being and performance.

The DFS Secretary called on PSBs to strengthen their financial and operational frameworks to adapt to evolving market conditions and cybersecurity requirements. He concluded by urging PSBs to prioritize responsible banking, advance their technological capabilities, and ensure financial health, all aimed at providing an improved banking experience for customers while supporting the government’s inclusive growth objectives.

Source : https://pib.gov.in/PressReleasePage.aspx?PRID=2070994