The Centre is doing a rethink on the target for priority sector lending and the issue is one of six topics that will be taken up for discussion and deliberation by bank and financial institution chiefs at the Gyan Sangam, which kicked off in Pune today.

“Since 1972, the 40 per cent target has remained constant and there is surely need for change in line with the recommendations of bankers and as regulators prepare a new prescription for PSL," Dr Hasmukh Adhia, Secretary, Department of Financial Services, said.

He was briefing reporters on the subjects that would be discussed at the two-day retreat for banks and financial institutions that will help prepare a draft for reforms in the financial sector.

Elaborating on the subject of universal financial inclusion, Adhia said in the last three months since the launch of the Jan Dhan Yojana, 10.3 crore new bank accounts had been opened, and 98.4 per cent of households had been covered by the scheme. Of these, 79.7 per cent had been given the Rupay card.

The Government was trying to get the Aadhaar card numbers seeded with bank accounts. Around 33 per cent of seeding has been achieved, he said, adding that the question now was how to keep the accounts active.

The other issues that needed to be addressed was how to mobilise the savings rate from 30 to 35 per cent using the accounts as channels for direct transfer and pension and insurance products and leveraging technology to improve banking technology.

On the topic of NPAs, Adhia said methods to improve risk management, asset quality and recovery would be deliberated upon.

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