Ministry of Finance Year Ender 2023: Department of Financial Services

The Department of Financial Services (DFS) continued the momentum of reforms, building on the foundation laid by earlier initiatives like the EASE Reform agenda — focusing on risk assessment, NPA management, financial inclusion, customer service, digital transformation, and more.

The EASE Reforms, governed by the EASE Steering Committee of the Indian Bank’s Association, have become deeply ingrained in all PSBs. The journey, spanning from EASE 1.0 to the current EASE 6.0, has witnessed a transformative shift, emphasizing digital customer experience, analytics-driven business improvement, tech and data-enabled capability building, and HR operations enhancement. The EASE Awards event recognizes banks for their outstanding performance in implementing the reform agenda.

Notably, the DFS’s strategic intervention has played a crucial role in the significant reduction of Non-Performing Assets (NPAs) in Scheduled Commercial Banks (SCBs). Gross NPAs have decreased from Rs. 9,33,779 crores in March 2019 to Rs. 5,71,515 crores in March 2023, demonstrating the effectiveness of measures such as the Insolvency and Bankruptcy Code (IBC), amendments to the SARFAESI Act, and the Prudential Framework for Resolution of Stressed Assets.

In the realm of digital payments, the DFS has been at the forefront of promoting a robust ecosystem. The DIGIDHAN Mission, now under the DFS, has played a pivotal role in the phenomenal growth of digital payment transactions in India. The total number of transactions has surged from 2,071 crores in FY 2017-18 to an impressive 13,462 crores in FY 2022-23. BHIM-UPI, a major driver in this growth, recorded over 1,000 crore transactions in a single month in August 2023.

Financial inclusion remains a key focus area, with initiatives like the Pradhan Mantri Jan Dhan Yojana (PMJDY), Pradhan Mantri Jeevan Jyoti Bima Yojana, Pradhan Mantri Suraksha Bima Yojana, MUDRA, Stand Up India, and Atal Pension Yojana making significant strides. The DFS’s efforts have ensured that millions of citizens, especially those in vulnerable sections, have access to basic banking services, insurance, and pension schemes.

In the agriculture sector, the DFS has facilitated the robust disbursement of credit, with the Agricultural Credit increasing from Rs. 8.45 lakh crore in FY 2014-15 to Rs. 21.55 lakh crore in FY 2022-23. The Kisan Credit Card (KCC) scheme has played a pivotal role in providing timely and hassle-free credit to farmers, with over 7.36 crore operative KCC accounts.

Overall, the Department of Financial Services has been instrumental in shaping a resilient and progressive financial landscape in 2023, contributing to the economic growth and well-being of the nation.


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