DFS Faces Wrath for Prioritising Govt. Schemes Over Bankers' Welfare

The Department of Financial Services (DFS) convened a review meeting on 15 February, chaired by Dr. Vivek Joshi, Secretary of DFS. The session focused on evaluating the progress of various central government schemes availed through banks, including Prime Minister’s Jan Dhan Yojana, Jeevan Jyoti Bima Yojana, PMSBY, Atal Pension Yojana, PM Mudra Yojana, Stand Up India, Street Vendor's Atma Nirbhar Nidhi, and PM Vishwakarma. Heads of Public Sector Banks (PSBs) along with senior officials from SIDBI(Small Industries Development Bank of India) and MUDRA((Mudra - Micro Units Development & Refinance Agency Ltd.) were in attendance.

However, amidst the official announcements, a storm brewed on social media. The We Bankers collective took to platform X (formerly Twitter) to express their discontent. They accused DFS of neglecting bankers' welfare issues while prioritising the review of what they termed as "vote bank schemes." The collective criticised DFS for allegedly setting aside long-pending demands such as #5DaysBanking.

(X post from official handle of DFS and response by We Bankers)

Allegations surfaced, indicating undue pressure on banks to enrol as many beneficiaries as possible in government schemes ahead of the 2024 Lok Sabha polls. The issue gained traction with an example cited in the State Bank of India (SBI), where customer complaints arose regarding unauthorised enrollment in government schemes. Reports indicate the case of SBI is not an isolated one. 

Furthermore, concerns are raised regarding the enrollment of beneficiaries without their explicit consent or knowledge, coupled with deductions of premiums from accounts for government-sponsored insurance schemes without prior authorization. Vinitha Ganesh(name changed), a Bank of Baroda officer who has worked in Maharashtra and Kerala told Kanal that the target pressure of government schemes has reached a peak as the general elections are nearing. 

“This sometimes forces some bankers to do mass enrollment of eligible beneficiaries without proper authorization from them. Such unauthorised enrolment is more prevalent especially in the urban centres of north India. Most of the customers won’t notice a deduction of around Rs. 20-30. This does not benefit most of them, and it gives an additional headache for bankers”,  she added. 

(Reply from a banker to the X post by DFS)

Although the government claims of financial inclusion and massive numbers of beneficiaries under these schemes, the allegations of enrollment without consent and unauthorised deductions cast a shadow on the integrity of the process. Also, the central government had recently admitted that around 18 to 20 percent of Jan Dhan Yojana bank accounts are currently inoperative, contradicting earlier claims. The union government’s previous order on Viksit Bharat Sankalp Yatra had also invited criticism over misusing money and manpower of PSBs for the propagation of electioneering of the ruling party.

The DFS has yet to respond to the allegations and concerns raised by the bankers. As the discourse escalates on social media, the banking community awaits clarity and assurance regarding their demands including 5 days banking, amidst the push for government scheme enrollments.