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Govt Urges Banks to Expand Digital Lending and Push UPI Credit Lines for Micro Businesses
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Moneycontrol•06-10-2026, 19:09
Govt Urges Banks to Expand Digital Lending and Push UPI Credit Lines for Micro Businesses
- •The government has directed banks to enhance digital outreach and focus on end-to-end digital processing of loans for micro-enterprises.
- •Channels such as UPI credit lines and credit cards for micro-enterprises were highlighted as key avenues for providing working-capital loans.
- •Financial Services Secretary Sanjay Lohiya urged private sector banks to increase their participation in various financial inclusion schemes.
- •Banks were instructed to raise awareness about claim eligibility under Jan Suraksha insurance schemes and integrate with the Jan Suraksha portal.
- •Lohiya encouraged banks to actively participate in the upcoming financial inclusion saturation campaign from October 21 to December 31.
Key Questions Answered
The government encouraged banks to focus on end-to-end digital loan processing and highlighted channels like credit cards for micro-enterprises and credit lines on the Unified Payments Interface (UPI) to provide working-capital loans.
Financial Services Secretary Sanjay Lohiya urged banks to participate in the financial inclusion saturation campaign from October 21 to December 31, focusing heavily on serving marginalized sections of society.
Banks have been instructed by Financial Services Secretary Sanjay Lohiya to enroll all new beneficiaries of the Pradhan Mantri Jeevan Jyoti Bima Yojana and Pradhan Mantri Suraksha Bima Yojana through the Jan Suraksha portal.
