DFS Secretary Reviews Public Sector Banks’ Performance, Emphasizes Financial Inclusion and Digital Initiatives

New Delhi: M. Nagaraju, Secretary of the Department of Financial Services (DFS), chaired a key review meeting today with Managing Directors and CEOs of Public Sector Banks (PSBs) to assess their performance and progress across financial soundness, digital transformation, cybersecurity, customer service, and support for priority sectors like agriculture and MSMEs. The meeting also focused on the progress of flagship government schemes aimed at financial inclusion.

The discussion covered a range of strategic priorities for PSBs, including bolstering financial resilience, managing assets and liabilities effectively, and strengthening cybersecurity and digital payments infrastructure. Nagaraju urged banks to continue building on recent financial achievements while staying agile in light of evolving market dynamics and emerging cybersecurity challenges.

A key focus area highlighted was the need to enhance Current Account Savings Account (CASA) deposits to drive sustainable credit growth. Nagaraju advised PSBs to mobilize CASA deposits more effectively, aligning digital and cybersecurity strategies with industry best practices to safeguard customer interests and maintain operational continuity. In addition, banks were encouraged to reinforce credit support for MSMEs and streamline digital onboarding processes to enhance customer experience.

Reflecting on the government’s commitment to financial inclusion, Nagaraju emphasized the importance of expanding access to financial services for underserved communities. PSBs were encouraged to accelerate efforts in supporting initiatives such as the 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), Stand Up India, PM SVANidhi for street vendors, and other schemes like PM Vishwakarma and PM Surya Ghar Yojana.

Nagaraju also highlighted the significance of adopting best HR practices and ensuring responsible banking to meet public expectations. He encouraged PSBs to continue leveraging technological advancements to improve grievance redressal mechanisms, reinforcing a customer-centric approach and ensuring the banking experience remains smooth and reliable.