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About the Department

The mandate of the Department of Financial Services covers the functioning of Banks, Financial Institutions, Insurance Companies and the National Pension System. The Department is headed by the Secretary (FS) who is assisted by one Additional Secretary (AS), four Joint Secretaries (JS), two Economic Advisers (EA) and a Deputy Director General (DDG).

The Department of Financial Services (DFS) oversees several key programs/initiatives and reforms of the Government concerning the Banking Sector, the Insurance Sector and the Pension Sector in India.

The major functions of the Department are as follows:
1. Administration of Acts-Export-Import Bank (EXIM Bank) Act, 1981, National Bank for Financing Infrastructure and Development Act, 2021, National Housing Bank Act, 1987, Small Industries Development Bank of India Act, 1989, Scheme for Financing Viable Infrastructure Projects (SIFTI), State Financial Corporation Act, 1951.
2. Administrative matters related to Public Sector Banks (PSB), Public Sector Insurance Companies (PSIC), Public Financial Institutes (PFIs), Regulator and matters related to appointments of Whole time directors(WTDs) and Government Nominee Directors in PFIs
3. Implementation of Scheme- Emergency Credit Line Guarantee Scheme (ECLGS) which was launched in May, 2020 as part of Aatmanirbhar Bharat Abhiyaan to support eligible Micro, Small and Medium Enterprises (MSMEs) and business enterprises in meeting their operational liabilities and restarting their businesses in context of the disruption caused by the COVID-19 pandemic, Schemes for financing viable infrastructure Projects (SIFTI) of IIFCL.
4. International Banking Relation
In addition to these, work related to the Office of custodian.
Initiatives and reforms relating to Financial Inclusion, Social Security, and Insurance as a Risk Transfer mechanism; credit flow to the key sectors of the economy including Micro, Small and Medium Enterprises (MSME)/ farmers/ common man are some of the key focus areas being dealt by the Department. The key flagship schemes being currently run/managed by the Department include the Pradhan Mantri Jan Dhan Yojana (PMJDY), Pradhan Mantri Suraksha Bima Yojana (PMSBY), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Mudra Yojana (PMMY), Atal Pension Yojana (APY), Pradhan Mantri Vaya Vandana Yojana (PMVVY) and the Stand Up India Scheme. Apart from these, Emergency Credit Line Guarantee Scheme (ECLGS) is also being implemented by the Department..

The Department provides policy support to the Public Sector banks (PSBs), Public Sector Insurance Companies (PSICs) and Financial Institutions (FIs) like National Bank for Agriculture and Rural Development (NABARD), Small Industries Development Bank of India (SIDBI),National Housing Bank (NHB), Export-Import Bank of India (EXIM Bank), National Bank for Financing Infrastructure and Development, India Infrastructure Finance Company Ltd. (IIFCL), Industrial Finance Corporation of India (IFCI),National Credit Guarantee Trustee Company Ltd. (NCGTC) etc. It also monitors the performance of these PSBs, PSICs and DFIs and undertakes policy formulation in respect of the Banking and Insurance Sector in India. This Department deals with legislative and policy issues pertaining to the concerned regulatory bodies i.e. the Reserve Bank of India (RBI), the Insurance Regulatory and Development Authority of India (IRDAI) and the Pension Fund Regulatory and Development Authority (PFRDA). DFS also deals with the legislative framework relating to debt recovery.

Matters relating to International Banking relations are also dealt by the Department.

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