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Public Sector Bank Reforms Agenda – EASE 4.0

  • IASbaba
  • August 27, 2021
  • 0
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Public Sector Bank Reforms Agenda – EASE 4.0

Part of: Prelims and GS – III – Banking sector 

In news: Union Finance Minister has unveiled a set of reforms for public sector banks (PSBs) called EASE 4.0 (Enhanced Access and Service Excellence). 

  • These reforms have been rolled out by the government to further the agenda of customer-centric digital transformation and embed digital and data into PSBs’ way of working’.
  • EASE 4.0 commits PSBs to tech-enabled, simplified and collaborative banking.

What reforms fall under EASE 4.0?

The EASE 4.0 reforms looks at four key initiatives for public sector banks to adopt: 

  • Smart lending backed by analytics; 
    • Dial-a-loan for doorstep lending
    • Credit@Click: End to End digital retail and MSME lending for 
    • Analytics based credit offers
  • 24×7 banking with resilient technology and cloud based IT systems
    • Deeper penetration of Mobile & internet banking 
    • Cloud-based IT Systems and improved cyber resilience
    • Process automation
  • Data enabled agriculture financing; 
    • Dial-a-loan for agri loans
    • Partnership with AgriTechs for data exchange
    • Automated Processing & sanctioning
  • Collaborating with the financial ecosystem.
    • Digital Payments in semi-urban and rural areas
    • At scale delivery of doorstep banking services
    • Co-lending with NBFCs

The annual report for the PSB Reforms Agenda EASE 3.0 for 2020-21 was also released.

  • The overall score of PSBs increased by 35% between March-2020 and March-2021,
    • The average EASE index score improved from 44.2 to 59.7 out of 100. 
  • The highest improvement is seen in the themes of ‘Smart Lending’ and ‘Institutionalising Prudent Banking’.
  • Credit@click was a flagship initiative under EASE 3.0: Nearly 4.4 lakh customers have been benefited through such instantaneous and simplified credit access
  • Nearly 72% of financial transactions are now happening through digital channels. 
  • PSBs are now offering services across call centres, Internet banking, and Mobile banking in 14 regional languages such as Telugu, Marathi, Kannada, etc.
  • For continual improvement in coverage under financial inclusion initiatives, there was a 13% growth in transactions provided by Bank Mitras in rural areas and 50% growth in enrolments in Micro personal accident insurance in Q4FY21 compared to Q4FY20.

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