NEW DELHI, Jan 10: The Department of Financial Services (DFS) continued its trajectory of reforms in 2025 through Your Money, Your Right campaign, the Banking Laws (Amendment) Act 2025, EASE 8.0 rechristened as EASE-Rise, Credit Line on UPI, Hello! UPI, NPA management, financial inclusion, customer service enhancement, digital transformation among others, an official statement said here on Saturday.
DFS strategic interventions have improved the financial health of the Banking Sector as the Gross NPA ratio of SCBs declined to 2.22 per cent and that of PSBs reduced to 2.58 per cent.
In the galore of digital payments, total transaction volume increased to 22,831 crore in FY 2024-25 at a Compound Annual Growth Rate (CAGR) of 41 per cent compared to 2,071 crore in FY 2017-18, the finance ministry statement said.
Moreover, the value of transactions also grew to Rs 3,509 lakh crore from Rs 1,962 lakh crore.
Financial inclusion remains a top priority with the launch of initiatives such as Pradhan Mantri Jan Dhan Yojana (PMJDY), Pradhan Mantri Jeevan Jyoti Beema Yojana, Pradhan Mantri Suraksha Beema Yojana, MUDRA, Stand Up India and Atal Pension Yojana.
According to the data shared by govt, during FY 2024-25, Scheduled Commercial Banks (SCBs) recorded highest-ever aggregate net profit of Rs 4.01 lakh crore and Public Sector Banks (PSBs) also recorded the highest-ever aggregate net profit of Rs 1.78 lakh crore during FY 2024-25.
Furthermore, the net profit of PSBs during the first half of FY2025-26 was Rs 0.94 lakh crore. The Global advances and deposits of PSBs increased from 71.95 lakh crore and 56.16 lakh crore in Mar-15 to 146.27 lakh crore and 114.85 lakh crore respectively in Sep-25, the government said.
The Banking Laws (Amendment) Act 2025 also improved governance standards and strengthened protection for depositors and investors which has improved the asset quality in PSBs.
As per NABARD data, asset quality has improved significantly with the Gross NPA ratio of Regional Rural Banks (RRBs) declined to 5.4 per cent in Mar-25 compared to the 6.8 per ent in Mar-16 and a peak of 10.9 per cent in Mar-19.
Provision coverage ratio (PCR) of RRBs also reached 65.1 per cent in Mar-25.
Looking across the performance of Non-Banking Finance Companies (NBFCs), RBI data said that as of June 2025, GNPA of NBFCs stood at 3.08 per cent which has significantly declined from 3.30 per cent in March 2025.
Unified Payments Interface (UPI) also emerged as one of the prime payment modes pioneering person-to-person (P2P) as well as Person-to-Merchant (P2M) transactions.
81 per cent by volume of total retail payment transactions in the country are processed through UPI rails.
(UNI)
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