**Executive Summary**
On April 29, 2026, the Secretary of the Department of Financial Services (DFS) chaired a meeting with Public Sector and Private Sector Banks to review the progress of various financial inclusion schemes. The meeting focused on assessing bank-wise performance, expanding branch networks in unbanked regions—particularly in North Eastern states—and establishing strategies for fiscal year 2026-27. Key action items include resolving infrastructure issues through state collaboration and increasing the participation of private banks in regional banking forums.
**Key Points / Main Content**
**Review of Financial Inclusion Schemes**
* Evaluated progress across multiple schemes: PMJDY, PMJJBY, PMSBY, APY, PMMY (Mudra), PMSVANidhi, PM Vishwakarma, and PM SuryaGhar Muft Bijlee Yojana.
* Commended the Mudra scheme for empowering rural and semi-urban entrepreneurs and reducing reliance on informal lending.
**Infrastructure and Connectivity Expansion**
* Directed banks to open brick-and-mortar branches in identified unbanked villages, with a specific emphasis on the North Eastern states.
* Instructed banks to work with state governments and State Level Bankers Committees (SLBC) to address network connectivity and infrastructure hurdles.
* Prioritized the deployment of Banking Correspondents in unbanked areas to ensure last-mile reach.
**Digital and Accessible Banking**
* Emphasized that physical branches must be supported by digital banking infrastructure.
* Required the implementation of assisted modes and vernacular language options to improve accessibility for diverse populations.
**Strategic Goals for FY 2026-27**
* Discussed detailed strategies and a way forward to meet the targets set for the upcoming 2026-27 financial year.
* Urged private sector banks to intensify efforts in serving marginalized sections of society.
**Impact Analysis**
**Public Sector Banks (PSBs)**
**Impact**
PSBs remain the primary drivers for national financial inclusion targets and are tasked with leading expansion in difficult terrains.
**Action Required**
Must accelerate branch openings in unbanked villages and collaborate with state authorities to resolve local infrastructure bottlenecks.
**Private Sector Banks**
**Impact**
There is an increased expectation for private banks to move beyond urban centers and contribute to social banking.
**Action Required**
They must provide more thrust to serving marginalized sections and participate fully in regional forums such as SLBC, DCC, and DLCC.
**Residents of Unbanked Villages (specifically North Eastern states)**
**Impact**
These populations will benefit from improved access to formal credit, banking services, and government schemes through new physical and digital touchpoints.
**Action Required**
Engage with newly deployed Banking Correspondents and utilize formal banking channels to replace informal lending.
Key Entities Referenced
Department of Financial Services (DFS): The nodal department within the Ministry of Finance responsible for overseeing the progress and implementation of national financial inclusion schemes.
Pradhan Mantri Mudra Yojana (PMMY): A flagship credit scheme lauded in the review as a successful program for empowering rural entrepreneurs and reducing dependence on informal lending.
Pradhan Mantri Jan Dhan Yojana (PMJDY): The foundational national mission for financial inclusion reviewed to ensure bank-wise progress in bringing unbanked populations into the formal banking system.
State Level Bankers Committee (SLBC): The inter-institutional forum identified to coordinate with state governments to resolve infrastructure and connectivity issues for branch expansion.
Shri M Nagaraju: The Secretary of DFS who chaired the review meeting and directed banks to expand physical and digital infrastructure in unbanked areas, particularly in North Eastern states.
Ministry of Finance
Secretary, DFS Chairs review meeting on
progress of Schemes of Financial Inclusion with
Public Sector Banks (PSBs) and major Private
Banks
Public Sector and Private Sector Banks should dedicatedly
work towards bringing more and more people into the fold of
Financial Inclusion Schemes: Secretary, DFS
Posted On: 29 APR 2026 7:54PM by PIB Delhi
Shri. M Nagaraju, Secretary, Department of Financial Services (DFS), Ministry of Finance, chaired a
review meeting with heads of Public Sector Banks (PSBs) and & Senior officers of Private Sector Banks,
in New Delhi today. The review meeting was attended by all Public Sector Banks and major private Sector
Banks.
During the meeting, Shri Nagaraju reviewed the 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.He also reviewed the progress of opening of brick & mortar branches of banks in unbanked villages and
asked banks for expanding their network in those villages identified for branch expansion, especially in
North Eastern states. 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, Shri Nagaraju added. Similarly, the importance of deployment of Banking correspondents in
unbanked villages was also taken up with banks. 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.
While reviewing progress, Shri 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 programs
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 way forward for achieving the goals for FY 2026-27 was discussed in
detail. Sh. Nagaraju also exhorted private banks to give more thrust on serving the marginalised sections
of the society and fulfilling their banking needs and participate fully in the various forums like SLBC /
DCC / DLCC to ensure meaningful financial inclusion.
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