FINANCIAL INCLUSION AND DEVELOPMENT

This role encapsulates the essence of renewed national focus on Financial Inclusion, promoting financial education and literacy and making credit available to productive sectors of the economy including the rural and MSME sector.

Overview

Credit flow to priority sectors: Macro policy formulation to strengthen credit flow to the priority sectors. Ensuring priority sector lending becomes a tool for banks for capturing untapped business opportunities among the financially excluded sections of society.
Financial Inclusion and Financial Literacy: Ensuring access to an array of basic formal financial services and products and scaling up financial awareness initiatives. The National Strategy for Financial Inclusion (NSFI) 2025-30 and the National Strategy for Financial Education (NSFE): 2020-25 sets forth the vision and key objectives of the Financial Inclusion and Financial Literacy policies in India to expand the reach and sustain the efforts through a broad convergence of action involving all the stakeholders in the financial sector.
Credit flow to MSME: Formulating policies to enable optimal flow of credit to the MSME sector, address stress in the accounts of MSMEs and undertake targeted capacity building.
Credit Delivery to SHGs, SC/ST community and Minority Communities: To enhance flow of credit to individuals, Self Help Groups, persons belonging to SC/ST category and Minority Communities through select Government Sponsored Schemes.
Credit flow to agriculture and allied activities: (i) Providing broad guidelines to enable ease of access to finance by farmers and (ii) Monitoring of relief measures to borrowers in areas affected by natural calamities.
Institutions: Strengthening institutional arrangements under Lead Bank Scheme, such as, State Level Bankers’ Committees (SLBCs), District Consultative Committees (DCCs), District Level Review Committees (DLRCs), and, Block Level Bankers’ Committees (BLBCs), to facilitate achievement of above objectives.

Our Approach

Looking Ahead

Legal Framework

PSL guidelines are reviewed from time to time with an objective of ensuring adequate flow of credit from the banking system to the sectors of the economy which are crucial for their contribution to socio-economic development, with focus on specific segments whose credit needs remain underserved despite being credit worthy. Commercial banks have also been mandated to support the eligible borrowers affected by natural calamities coming under the ambit of National Disaster Management Framework of Government of India.

Implementing the action points of National Strategy for Financial Inclusion 2025-30 and monitoring the progress within financial inclusion landscape through FI Index and disaggregated data, to expand and sustain the progress of financial inclusion in the country in a holistic manner.

Strengthening financial literacy awareness among public through Center for Financial Literacy.