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Informist, Tuesday, Oct. 6, 2026

 

NEW DELHI – Both public sector banks and private sector banks must provide working capital loans to industry through channels such as credit lines on the Unified Payment Interface and the Credit Card Scheme for Micro Enterprises, Department of Financial Services Secretary Sanjay Lohiya said Tuesday. Banks should also put in more effort to enhance digital presence and process loans digitally, the finance ministry cited Lohiya as saying.

Lohiya held a meeting with top executives of public sector banks and private sector banks Tuesday to discuss the progress made by banks under financial inclusion. He also urged the private sector banks to increase their participation in financial inclusion schemes.

 

The Credit Card Scheme for Micro Enterprises was launched in the Budget for 2025-26 (Apr-Mar) to support the growth and daily operations of micro enterprises. Under the scheme, a credit of up to INR 500,000 is available based on the underwriting criteria of the credit card issuers.

According to Lohiya, while significant progress has been made in deepening financial inclusion in the country through various flagship schemes, banks should make efforts to further enhance their digital outreach and focus on end-to-end digital processing of loans, the finance ministry said in a release. 

 

During the meeting, Lohiya also directed the PSU banks to increase awareness of claim eligibility in Jansuraksha insurance schemes so that the nominees receive the amount after the unfortunate demise of the beneficiary. "Banks were also advised to take specific care while handling grievances related to claims under these schemes," the ministry said.

 

Jansuraksha is a social security scheme launched in 2015 aimed at providing access to essential social security protection. Under this broad umbrella, the government launched the Pradhan Mantri Jeevan Jyoti Bima Yojana and Pradhan Mantri Suraksha Bima Yojana. These schemes are offered by insurers in tie-ups with banks.

 

Lohiya asked banks to enrol all new beneficiaries of Pradhan Mantri Jeevan Jyoti Bima Yojana and Pradhan Mantri Suraksha Bima Yojana through the Jansuraksha portal, as the portal will be integrated with all banks and insurers, thereby enhancing the quality of data and ease of operations.

 

"During the meeting, ways to increase the persistency ratio of the Atal Pension Yojana were also discussed," the ministry said. Atal Pension Yojana is a flagship scheme under the National Pension System, administered by the Pension Fund Regulatory and Development Authority. It offers a guaranteed minimum pension of INR 1,000 to INR 5,000 per month starting at age 60, based on contributions.  End

 

Reported by Priyasmita Dutta

Edited by Deepshikha Bhardwaj

 

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