New Delhi [India], January 10 : The Department of Financial Services (DFS) under the Ministry of Finance reported significant progress in banking reforms, digital payments, and financial inclusion during 2025, marking a year of strengthened financial stability and governance, according to a year-end review released on Saturday.
DFS continued its trajectory of momentous reforms in 2025, building on the robust and firm foundation established through initiatives like Your Money, Your Right Campaign, the Banking Laws (Amendment) Act, 2025, EASE 8.0 rechristened as EASE₹ise, 'Credit Line on UPI', 'Hello! UPI'- an AI-voice-enabled payment feature, NPA management, financial inclusion, customer service enhancement, digital transformation among others.
The Ministry said the Indian banking sector witnessed a sharp improvement in asset quality, with the Gross Non-Performing Asset (GNPA) ratio of Scheduled Commercial Banks declining to 2.22 per cent by March 2025, while Public Sector Banks (PSBs) recorded a GNPA ratio of 2.58 per cent. Provision Coverage Ratio also rose to a healthy 93.14 per cent, reflecting enhanced resilience in the sector.
In digital payments, the DFS has strengthened its leadership role, driving consistent growth through the DIGIDHAN Mission. The total digital payment transactions volume increased to 22,831 Crore in FY 2024-25 at CAGR of 41per cent from 2,071 crore in FY 2017-18. The value of transactions has grown from Rs 1,962 lakh crore to Rs 3,509 lakh crore, it said.
Public Sector Banks posted their highest-ever profits, with aggregate net profit touching Rs 1.78 lakh crore in FY 2024-25. Scheduled Commercial Banks reported record profits of Rs 4.01 lakh crore during the same period, driven by improved credit growth and lower stress levels.
Financial inclusion initiatives such as Pradhan Mantri Jan Dhan Yojana, PM Mudra Yojana, Atal Pension Yojana and insurance schemes further expanded their reach, benefiting millions of citizens, particularly from marginalised sections. As of December 2025, Jan Dhan accounts crossed 57 crore with deposits exceeding Rs 2.8 lakh crore.
The government also strengthened governance through legislative measures, including the Banking Laws (Amendment) Act, 2025, and insurance sector reforms that raised the foreign direct investment limit to 100 per cent.
Additionally, the nationwide "Your Money, Your Right" campaign facilitated the return of over Rs 4,500 crore of unclaimed financial assets to rightful owners.
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