FinMin to hold review meeting with banks on Thursday on govt schemes

The meeting will be chaired by the Department of Financial Services secretary M Nagaraju

The Union finance ministry is going to hold a review meeting with public sector banks (PSBs) and select private sector lenders on Thursday to assess the progress of various government-run schemes and the performance of the National Asset Reconstruction Company Limited (NARCL), according to a senior government official.

 

“The meeting will be chaired by the Department of Financial Services (DFS) Secretary M Nagaraju. Apart from PSB chiefs, heads of ICICI Bank, HDFC Bank, Axis Bank and IndusInd Bank have also been called for the meeting,” the official said on the condition of anonymity.

 

The senior government official further added that the meeting is likely to review performance of schemes such as Credit Guarantee Fund Scheme for Skill Development (CGFSSD), MUDRA Loan for homestays, Pradhan Mantri Matsya Kisan Samridhi Sah-Yojana (PM-MKSSY), Kisan Credit Card (KCC), and Fisheries and Aquaculture Infrastructure Development Fund (FIDF).

 

“The meeting will also discuss announcements made in the Budget 2025-26 for accelerating the pace of credit to the MSME sector, PM Vidya Lakshmi Scheme, PM-KUSUM, and PM Surya Ghar Muft Bijli Yojana,” added the official.

 

Notably, the last such review meeting was held with PSB heads and the DFS secretary in December 2024.

 

NARCL was incorporated in July 2021 to manage and resolve non-performing assets (NPAs) in the banking sector. As of December 2024, NARCL has acquired 22 accounts with an exposure of ₹95,711 crore, demonstrating its effectiveness in driving resolutions. Additionally, 28 accounts with an exposure of ₹1.28 trillion were resolved by banks, subsequent to the NARCL making the offers, reflecting the indirect impact of NARCL’s presence in settling/successfully pursuing recovery through other resolution mechanisms.

 

CGFSSD offers credit guarantees to financial institutions for loans provided to skill development training institutes. It aims to enhance the availability of funding for skill development programs, benefiting trainers and trainees. PM-MKSSY focuses on improving the welfare of fishermen by enhancing infrastructure, technology, and financial support. It aims to promote sustainable fishing practices and increase fish production in the country. KCC scheme provides farmers with access to credit for agricultural needs, while FIDF aids in developing infrastructure for the fisheries sector.

 

The PM Vidya Lakshmi Scheme aims to provide financial support in the form of loans to students pursuing higher education in India and abroad. It makes education more accessible by offering easier loan terms and faster processing for students. PM-KUSUM supports farmers in setting up solar-powered pumps and grid-connected solar power systems. It aims to reduce dependency on conventional energy sources and promote sustainable farming practices, while PM Surya Ghar Muft Bijli Yojana provides free electricity connections to rural and economically disadvantaged households. It aims to improve the quality of life for marginalised communities by ensuring access to essential electricity services.