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New Delhi : Union Finance & Corporate Affairs Minister Nirmala Sitharaman on February 26, 2020, unveiled EASE 3.0, the Public Sector Bank (PSB) Reforms Agenda 2020-21 for smart, tech-enabled banking, and the PSB EASE Reforms Annual Report 2019-20 here.
Finance Minister Sitharaman exhorted Public Sector Banks (PSBs) to have one-to-one interface with their customers through branch based banking and not rely so much on credit ratings agencies. She said that banks need to connect with their customers by leveraging technology but not exclusively only through the interface of technology. In her address on the occasion, the Finance Minister asked the bankers to focus more at the grassroot level, according to a PIB release.
Sitharaman further exhorted banks to be friendlier to their customers by using local language in bank branch. She said that PSBs have played a great role in enabling financial inclusion in the country.
EASE 3.0 seeks to enhance ease of banking in all customer experiences using technology, Finance Minister Nirmala SitharamanFinTech, alternate data and analytics. Dial-a-loan for doorstep loan facilitation, Credit@click for end-to-end digitalised lending, on-the-spot EASE Banking Outlets at well-frequented places like malls and stations, palm banking, digitalised branch experience, analytics-based instant credit offers, cash-flow-based credit and tech-enabled agriculture lending are part of a wide array of tech-enabled ease enhancements that PSBs would effect during FY2020-21.
At the launch function organised by Indian Banks’ Association in Delhi, individual PSBs gave a preview of the array of tech-enabled services that are in the pipeline or have been piloted and will be scaled up over the coming year across PSBs.
UCO Bank unveiled its plans for customers to obtain via app, portal or call centre, Doorstep Banking Services offered collectively by PSBs as “PSB Alliance”, for services such as pick-up of cheques and income-tax exemption certificates and delivery of income-tax challan, drafts and account statements in major cities across India.
State Bank of India showcased Shishu e-Mudra app-based lending for instant sanction of working capital up to Rs 50,000 to existing small business customers of the bank and the bank announced its plan to scale up sanctioning through the app to Rs 1 lakh in branch-assist mode.
Union Bank of India gave a preview of its app for end-to-end digitalised lending to MSMEs of up to Rs 50 crore, which it proposes to rollout during the coming year.
Bank of Baroda showcased its tablet-based Tab Banking services for doorstep account-opening, including in villages and for migrant labourers in industrial units, and has created capacity for opening about 10,000 accounts per day. Bank of Baroda also gave a preview of its tab-based doorstep loan application, disbursement, and collection for informal enterprises in partnership with NBFCs, including in rural areas.
State Bank of India also presented one-stop online agriculture ecosystem for meeting farmers’ needs in the form of app-based YONO Krishi, which enables credit including agricultural gold loan, estimation and purchase of agricultural inputs, and information needed for agricultural operations. The bank also announced its plan to introduce SAFAL for pre-approved agricultural loan along with multipurpose insurance cover.