Dr Bhagwat Karad, Union minister of state for finance, said on Wednesday that nationalised banks are doing good work in extending the Centre’s financial schemes for groups like farmers, businesses and street vendors, but their private peers need to do more in this regard.
He was addressing the media in Nagpur on the sidelines of a meeting on financial inclusion in Maharashtra’s Vidarbha region.
The minister said the Centre runs several financial schemes like Pradhan Mantri Jan Dhan Yojana, PM SVANidhi (a microcredit programme), Pradhan Mantri Suraksha Bima Yojana and Pradhan Mantri Jeevan Jyoti Bima Yojana for groups like farmers, businessmen and street vendors via banks.
Nationalised banks play an important role in extending these financial schemes to the last man, but private sector banks are not doing as much as is expected from them in this regard, he said.
A meeting with private banks will be taken by this month-end and “necessary” directions will be given to them on this aspect, he said.
Karad said more than 50 crore bank accounts (zero-balance) have been opened under the Pradhan Mantri Jan Dhan Yojana so far. He said corporate sector NPA (Non-Performing Assets) is also reducing.
India’s economy has come to the fifth position from 10th, said Karad. The minister said his ministry is holding meetings with banks to ensure that they reach out to the last man in cities and rural areas with the government’s financial schemes.
The minister said good work is being done in Vidarbha though more has to be done in aspirational districts like Gadchiroli and Washim. He directed bank officials to increase financial literacy in rural areas.
