Financial Services Secretary Urges Banks to Activate Dormant Accounts, Bolster Cybersecurity, and Enhance Private Sector Participation

Financial services secretary Vivek Joshi emphasized the need for banks to activate dormant accounts, promote nominations, and raise awareness about cyber fraud during his address on Tuesday. Speaking at the Global Inclusive Financial Summit, Joshi highlighted the importance of private sector banks catching up with their public sector counterparts in financial inclusion efforts.

Joshi urged private sector banks to increase their involvement in government schemes such as PM Jan-Dhan Yojana (PMJDY) and Jan Suraksha to achieve the ambitious financial inclusion goals set by the government. The Department of Financial Services, under the finance ministry, shared Joshi’s sentiments in a post on X, emphasizing collaboration among all stakeholders to build a financially inclusive society.

Providing insights into the progress of financial inclusion, Joshi revealed that 55% of PMJDY accounts are owned by women. He expressed optimism about achieving near-universal coverage, stating that the addition of 30 million Jan Dhan accounts annually brings the country closer to ensuring every adult has at least one basic bank account.

In response to the growing challenges of cybersecurity and digital payment fraud, the government recently assessed the preparedness of banks and financial institutions. Joshi disclosed that seven million mobile numbers were suspended due to suspicious transactions, underscoring the government’s commitment to safeguarding financial transactions.

Joshi’s comprehensive call for action resonates with the broader goal of creating a resilient and inclusive financial ecosystem through the activation of dormant accounts, heightened cybersecurity measures, and increased private sector participation.