Major Functions of Department of Financial Services

1. Department of Financial Services is administering Government policies having a bearing on the working of banks and the term lending Financial Institutions. The Division is headed by Secretary , (Financial Services) and operates through three sub-divisions (I) Industrial Finance (II) Banking Operations and (III) Banking and Insurance. Each sub-division is headed by a Joint Secretary.

2. Industrial Finance sub-division deals with the legislative and administrative work relating to All India Financial Institutions, appointment of Chief Executives of Financial Institutions, appointment of Chairman and Members of Board for Industrial and Financial Reconstruction (BIFR), Appellate Authority for Industrial and Financial Reconstruction (AAIFR) and matters relating to industrial sickness and miscellaneous issues of coordination between industry, banks and financial institutions. It also deals with establishment of Debts Recovery Tribunals(DRTs) and Debt Recovery Appellate Tribunals (DRATs).

3. The Banking Operations sub division deals with legislative proposals relating to banks, non-banking financial companies, chit fund companies and other related matters and processing of appointments of chief Executives and Government nominee Directors/non official directors on the boards of public sector banks. In addition, policy matters relating to private banks, foreign banks and non banking financing companies, improvement of customer's service in banks and redressal of customer's grievances are also dealt in this sub division. This sub division also deals with Vigilance matters, appointment of Chief Vigilance Officers(CVOs) in the public sector banks and other related matters.

4. The Banking and Insurance sub division deals with all policy matters relating to bank's credit linked self employment programmes implemented by Ministries/Departments of Central Government, operational and administrative matters of National Housing Bank (NHB) and coordination with the RBI on the above matters. This sub-division also deals with credit policy matters relating to village & cottage industries, handloom handicrafts, transport, education, small business, retail trade etc. Matters relating to selective credit control, credit guarantee corporation and administration of the Regional Rural Banks Act, 1976, negotiation and implementation of wage settlement in banking industry, man-power housing, processing of proposals for appointment of workmen employee directors, implementation of reservation policy for Scheduled Caste/Scheduled Tribes and the other specified categories is also being dealt by this sub division.