DFS mandate

Subject: Government organization

Context:

Former Reserve Bank of India (RBI) Governor RaghuramRajan and former Deputy Governor Viral Acharya have proposed creation of a bad bank, winding down of Department of Financial Services in the Ministry of Finance, paring down the government stake in public-sector banks (PSBs) below 50 per cent and reprivatisation of some PSBs to reform the banking sector.

Concept:

• The mandate of the Department of Financial Services covers the functioning of Banks, Financial Institutions, Insurance Companies and the National Pension System.
• 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.
• 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/ 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 DhanYojana (PMJDY), Pradhan Mantri Suraksha BimaYojana (PMSBY), Pradhan MantriJeevanJyotiBimaYojana (PMJJBY), Pradhan Mantri Mudra Yojana (PMMY), Atal Pension Yojana (APY), Pradhan MantriVayaVandanaYojana (PMVVY) and the Stand Up India Scheme