FinMin to meet CEOs of PSBs on Tuesday, review progress of financial inclusion schemes

The finance ministry has called a meeting of heads of Public Sector Banks (PSBs) on Tuesday to review the progress of various financial inclusion schemes, including PM Vishwakarma, Jan Suraksha and Mudra Yojana.

The meeting is scheduled to be chaired by Financial Services Secretary Vivek Joshi.

According to sources, the meeting would review the progress of various flagship schemes, including PM Vishwakarma, StandUp India, and PM SVANidhi, among others.

Other financial inclusion-related issues would also be discussed in the meeting, sources said.

Prime Minister Narendra Modi in September last year launched the PM Vishwakarma scheme, under which traditional craftsmen and artisans will be provided loan assistance at a minimal interest rate without the need for collateral.

With a financial outlay of Rs 13,000 crore for a period of five years, the scheme will benefit about 30 lakh families of traditional artisans and craftsmen, including weavers, goldsmiths, blacksmiths, laundry workers, and barbers.

Alongside these items, sources said, targets for PM JanDhan Yojana (PMJDY) would also be reviewed.

The status of inoperative accounts under PMJDY and issuance of RuPay cards will also be reviewed, sources added.

Other financial inclusion schemes to be discussed include Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY). PMJJBY offers life insurance cover of Rs 2 lakh, in case of death due to any reason, to people in the age group of 18-50 years having a bank or post office account, who give their consent to join or enable auto-debit of premiums.

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On the other hand, Pradhan Mantri Suraksha Bima Yojana offers insurance cover of Rs 2 lakh for accidental death or total permanent disability and Rs 1 lakh for partial permanent disability to people in the age group of 18-70 years with a bank or post office account, who give their consent to join or enable auto-debit of premium.

In order to promote entrepreneurship at the grassroots level, banks have sanctioned more than Rs 40,700 crore to over 1.80 lakh beneficiaries under the StandUp India scheme in seven years.

StandUp India, launched on April 5, 2016, with a focus on economic empowerment and job creation, has been extended up to 2025. The scheme aims to encourage all bank branches to extend loans to borrowers belonging to SC, ST and women categories in setting up their own greenfield enterprises.

Last year, the government approved the continuation of Prime Minister Street Vendor's AtmaNirbhar Nidhi (PM SVANidhi) Scheme till December 2024.

The scheme was launched in June 2020 by the government as a micro-credit facility to empower street vendors to recover losses incurred as a result of the COVID-19 pandemic. Through PM SVANidhi, affordable collateral-free loans are given to street vendors.