PSBs told to push for financial inclusion, expand insurance coverage

 The Centre has also asked state-owned banks to enter into co-lending arrangements with NBFCs and MFIs

The Centre has asked public sector banks (PSBs) to aggressively target financial inclusion, expand pension and insurance coverage and, at the same time, use financial technology (fintech) to extend credit to borrowers during the festive season through co-lending arrangements.

As PSBs have started their credit outreach programmes to support the economy, the government is planning district-wise loan melas, similar to the ones organised in October 2019. These are expected to be launched next month.

Banks have been given a broad outline by the government, ranging from financial inclusion to signing co-lending agreements with non-banking financial companies (NBFCs) and microfinance institutions (MFIs). Banks have been asked to identify individuals who are 21 years of age, through the voters’ list, and do not have a bank account. Banks will have to open accounts for such individuals under the Pradhan Mantri Jan Dhan Yojana (PMJDY).

In order to give a digital push, state-owned lenders have been given a target to provide RuPay cards to 100 per cent account holders under the PMJDY in metro and urban areas, and 90 per cent account holders in semi-urban and rural areas. About 315 million RuPay cards had been issued to PMJDY account holders as of October 10.