Special Plenary with Shri M Nagaraju, Secretary, Department of Financial Services, MoF
Mumbai, 18th November 2025
57 crore Jan Dhan Accounts, 80% UPI Share Reflect India’s Financial Deepening: DFS Secretary
India’s Financial Sector Entering a New Maturity Phase: DFS Secretary M. Nagaraju
Financial Inclusion, Digital Payments, and Low NPAs Sign of a Stronger System: DFS Secretary
Shri C.S Shetty, SBI Chairman Outlines Roadmap for a Digitally Advanced, MSME-Friendly Banking Ecosystem
India’s financial sector is evolving with greater maturity and expanding its reach to fulfil the aspirations of all sections of society, including marginalised communities and MSMEs, through strengthened financial inclusion. With increased openness, innovation, and technology adoption, the sector also is positioning itself to drive the Viksit Bharat vision with its core objective being to build a financially confident, resilient, and empowered society. This was underscored by Shri M Nagaraju, Secretary, Department of Financial Services (DFS), Ministry of Finance during the Special Plenary at the second edition of CII Financing Summit 2025 organised in partnership with Department of Financial Services (DFS), Ministry of Finance in Mumbai today.
Elaborating on the subject, the Secretary noted that the financial sector is stronger than ever, through financial inclusion with Jan Dhan accounts surging to 57 crore, of which 55.7 per cent are held by women and digital transformation with UPI now accounting for nearly 80 per cent of digital payments indicating affordability and wider reach.
At the same time, NPAs at historic lows, and key stress indicators in the banking ecosystem continue to decline quarter after quarter, reflecting a system that is responding effectively to ongoing reforms. He added that this progress has been made possible through the coordinated efforts of the Government and the regulator, who are working in tandem to drive transformational change across the sector.
The BFSI sector continues to be the primary source of funding for industries that are driving India’s transformational growth, with banking, financial services, and insurance playing a pivotal role in the nation’s economic progress. The banking sector has recorded strong growth in gross advances, supported by a healthy NPA position—an outcome of sustained reforms led jointly by the Government and the RBI. The NBFC sector, too, has scaled up and strengthened its fundamentals, while the insurance industry is undertaking significant efforts to expand coverage and improve inclusivity across the country. The Government also remains firmly committed to advancing infrastructure financing as a key enabler of long-term growth.
He noted that credit flows to the MSME sector have increased significantly, supported by a series of Government-led reforms such as the Credit Guarantee Scheme, loan moratoriums, TReDS, and various handholding initiatives. Schemes like the Mudra Yojana, PM SVANidhi, Stand-Up India, and other similar programmes are also contributing meaningfully to the sector’s growth.
Echoing these sentiments, Shri C. S. Shetty, Chairman, SBI, highlighted in his presentation that the Government has taken significant steps to enhance credit flow to the MSME sector, and that the availability of reliable digital data has strengthened banks’ confidence in lending to MSMEs. He noted that efforts are also underway to improve the ease of doing banking by enhancing customer experience and simplifying lending processes. Shri Shetty added that both the Government and the regulator are shaping a positive growth narrative despite global uncertainties. He further touched upon key themes including financial inclusion, challenges facing the insurance sector, and the need for continuous reskilling of employees to address the demands of emerging and disruptive technologies.
To make banking more contemporary and digitally sophisticated, he proposed several measures, including the creation of a National Financial Grid, the establishment of an Indian Digital Payments Corporation, and the development of digital twins for all MSMEs to help address unmet credit demand.
Mr Chandrajit Banerjee, Director General, CII, during his welcome address spoke about the various areas on which discussions have been underway during the summit.
Mumbai
18.11.25