DFS Secretary M. Nagaraju Reviews FY 2026‑27 Financial Inclusion Progress with PSBs & Private Banks

Overview The Ministry of Finance convened a high‑level review chaired by Shri M. Nagaraju , Secretary of the Department of Financial Services (DFS) . The meeting brought together heads of all Public Sector Banks and senior officials of major private banks to assess the status of key inclusion programmes. Key Developments Bank‑wise progress was examined for schemes such as PMJDY , PMMY , PMJJBY , PMSBY , APY , and newer initiatives like PM Vishwakarma and PM SuryaGhar Muft Bijlee Yojana . Discussion on opening new brick‑and‑mortar branches in unbanked villages, with a special focus on the North‑Eastern states. Emphasis on deploying banking correspondents and augmenting digital infrastructure (assisted modes, vernacular language support) for last‑mile outreach. Recognition of the Financial Inclusion impact of the MUDRA scheme, citing increased entrepreneurship and reduced reliance on informal lenders. Call for private banks to intensify services to marginalised sections and actively participate in forums such as the SLBC , DCC, and DLCC. Important Facts • The review covered progress up to FY 2026‑27 . • Banks were urged to resolve infrastructure and connectivity challenges in collaboration with state governments and the SLBC . • Physical branches must be complemented by digital channels offering assisted services and local language interfaces. UPSC Relevance Understanding the mechanisms of Financial Inclusion is essential for GS‑3 (Economy) questions on inclusive growth, poverty alleviation, and banking reforms. The role of the DFS and its coordination with both public and private banks illustrates the federal‑state partnership model, a recurring theme in GS‑2 (Polity). Schemes like PMJDY and PMMY are frequently cited in case‑study questions on social sector interventions. Way Forward The ministry expects banks to: Accelerate branch expansion in identified unbanked villages, especially in the North‑East. Strengthen digital outreach with assisted modes and vernacular interfaces to bridge the last‑mile gap. Collaborate with state authorities and the SLBC to address infrastructure bottlenecks. Private banks to increase their share of marginalised customers and actively engage in coordination forums (SLBC/DCC/DLCC) for holistic inclusion. Successful implementation will be monitored throughout FY 2026‑27 , with periodic reviews to ensure that the inclusion targets align with the broader goal of inclusive economic growth.