Finance Minister Nirmala Sitharaman released the new reform agenda ‘Enhanced Access and Service Excellence‘ – EASE 3.0 on February 26 to provide advanced solutions to make the Public Sector Banking (PSB) smart and technology-driven.
Crux of the Matter
EASE 3.0 aims to digitize the customer’s experience at Public Sector Bank (PSB) branches by providing facilities like ‘Palm Banking‘ for end-to-end digital delivery of financial services, ‘Banking on Go‘ via EASE banking outlets at frequently visited spots, etc.
Good, judicious mix of personal connect, assessment, and good data information that is coming to you is what is required. Conveniently going to the extreme, forgetting the branch-level customers have not done us good. – FM Nirmala Sitharaman
The FM highlighted that PSB’s need to utilize their advantage of local language over the private banks. She also warned against state-run banks’ overreliance on data from credit rating agencies while sanctioning loans. A judicious mix of personal relations that officials have built with long-standing customers and proper technology can enhance banking services as per Sitharaman. Recently, RBI governor Shaktikanta Das also had asked banks to shift focus on credit offtake, which has dropped to 7% in recent months.
The Finance Minister will also be visiting district-level PSU branches after April to meet the staff after work hours and address their grievances. The Finance Minister and the Finance Secretary Rajiv Kumar met top officials of all public sector banks to discuss the status of loans pertaining to restructured SMEs.
FM launches #EASE3.0 for smart & tech-enabled banking. Digital & data-driven #PSBs to enhance EASE of banking through use of FinTech, AI & analytics. Overhauled customer experience with Dial-a-loan, Credit@click, & analytics-based credit offers @PMOIndia @FinMinIndia pic.twitter.com/yQAndpGDN0 — Rajeev kumar (@rajeevkumr) February 26, 2020
In a meeting with MSME Minister Nitin Gadkari, the Finance Minister discussed schemes announced in the budget for the revival of the sector. The government has asked banks not to declare stressed assets of MSMEs as Non-Performing Assets (NPAs) till 31 December 2020.
Curiopedia
The Ease of Doing Business Index is an index created by Simeon Djankov, an economist at the Central and Eastern Europe sector of the World Bank Group. The Doing Business report has its origins in a paper first published in the Quarterly Journal of Economics by Simeon Djankov, Rafael La Porta, Florencio Lopez-de-Silanes and Andrei Shleifercalled “The Regulation of Entry” in 2002. The paper presented data on the regulation of entry of start-up firms in 85 countries covering the number of procedures, official time and official cost that a start-up must bear before it could operate legally. More Info
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