Finance Minister Nirmala Sitharaman directed the public sector banks (PSBs) to participate actively in the upcoming 3-month Financial Inclusion Saturation Campaign, beginning July 1, 2025, covering 2.7 lakh gram panchayats and urban local bodies. This campaign will also focus on assisting citizens with respect to KYC, re-KYC and unclaimed deposits.
Banks have been directed to ensure focused outreach, adequate manpower deployment, and effective publicity of this special campaign to further deepen financial inclusion under schemes such as PM Jan Dhan Yojana, PM Jeevan Jyoti Bima, and PM Suraksha Bima Yojana.
Chairing a high-level meeting to review the performance of PSBs across key areas, including financial parameters, credit offtake, financial inclusion, customer service, grievance redressal, digital banking, and cyber security, the FM acknowledged the strong financial performance of PSBs in recent years, and particularly in FY 2024–25.
The FM was also apprised that the PSBs are adequately capitalised, with their CRAR standing at 16.15% as of March 2025. During the review of deposit and credit trends, Sitharaman emphasised the need for sustained efforts to improve deposit mobilisation to support ongoing credit growth. PSBs were advised to undertake special drives, make effective use of their branch networks, and deepen outreach in semi-urban and rural areas.
Lending to the energy sector, particularly in renewable and sustainable areas, was underscored as a national priority to advance India’s green growth agenda. In line with the Budget 2025-26 announcement to develop indigenously designed small modular nuclear reactors (SMR), banks were advised to develop credit models to support this critical sector.
Banks were further advised to expand their presence in GIFT City to support India’s aspirations in international financial services, tap into emerging global opportunities, and increase participation in the India International Bullion Exchange (IIBX).
