Government Initiates Private Banks To Have Low Share In Social Schemes

The ministry has also asked the banks to increase their share of credit to the industry and informed that government would survey banks and rate them in terms of their customer service

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The government pulled up private banks for having low share in schemes like Jan Dhan Yojana and insurance covers that aimed at social security. As per reports, the ministry has also asked the banks to increase their share of credit to the industry and informed that government would survey banks and rate them in terms of their customer service.

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Financial services secretary Sanjay Malhotra, while addressing the chiefs of public and private sector banks at the Indian Banks' association's 75th AGM, has said that, "While the share of private banks in credit is more than 40 per cent, they account for only 3 per cent in Jan Dhan Yojana. Their contribution to PM Jeevan Jyot Yojana and PM Suraksha Bima Yojana is only 4 per cent. In the case of Atal Pension Yojana and Kisan Credits, it is 7 per cent.

Making a commercial case for fulfilling social obligations, Malhotra added, "This is the time when rural economies are growing, and even regional rural banks are regrowing. Jan Dhan Yojana account today is not a zero-balance one. The balance is INR 4000 on an average."

Mentioning about the ministry's plans to survey and rate banks' customer service, he added that, "The needs of customers are also changing. They are not just looking at banking services; they are looking for banking services at the click of a button. So, we all have to embrace technology, and it is not only for the bigger banks or the public and private sector banks."

Talking more about the industrial sector, Malhotra added that within the industry the MSMEs contribute a third to the economy while their share of credit is 16 to 17 per cent.