India pushes banks to boost digital loans and expand financial inclusion outreach

During a policy review in New Delhi, Department of Financial Services secretary Sanjay Lohiya directed both public-sector and major private-sector banks to extend digital lending capabilities, including end-to-end online loan processing and credit lines on the Unified Payments Interface for micro-enterprise working capital. He emphasized greater involvement in financial inclusion programmes such as Pradhan Mantri Jan Dhan Yojana, PMJJBY, PMSBY, Atal Pension Yojana and Pradhan Mantri Mudra Yojana, and urged banks to improve beneficiary awareness of Jan Suraksha insurance claims.

The banks were also asked to integrate new insurance enrolments through the Jan Suraksha portal, streamline grievance redressal, and boost the persistency of the Atal Pension scheme. Additional focus was placed on expanding brick-and-mortar branches and banking correspondents in villages lacking formal banking services. The directives form part of a broader push to deepen financial inclusion through the JAM framework of Jan Dhan, Aadhaar and mobile connectivity.