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Finance Minister unveils Doorstep Banking Services and declares EASE 2.0 Index Result

10th September, 2020 Economy

Context: Union Minister of Finance & Corporate Affairs inaugurated Doorstep Banking Services by PSBs and participated in the awards ceremony to felicitate best performing banks on EASE Banking Reforms Index.

More about news:

Doorstep Banking Services by PSBs

  • It is part of the EASE Reforms.
  • It is envisaged to provide convenience of banking services to the customers at their door step through the universal touch points of Call Centre, Web Portal or Mobile App.
  • Customers can also track their service request through these channels.
  • The services shall be rendered by the Doorstep Banking Agents deployed by the selected Service Providers at 100 centres across the country.
  • At present only non-financial services Pick up of negotiable instruments (cheque / demand draft / pay order, etc.), Pick up new cheque book requisition slip etc. are available.
  • The services can be availed by customers of Public Sector Banks at nominal charges. The services shall benefit all customers, particularly Senior Citizens and Divyangs who would find it at ease to avail these services.

Performance of PSB on EASES 2.0 Index

  • A common reform agenda for PSBs, EASE Agenda is aimed at institutionalizing clean and smart banking.
  • It was launched in January 2018, and the subsequent edition of the program ― EASE 2.0 built on the foundation laid in EASE 1.0 and furthered the progress on reforms.
  • Reform Action Points in EASE 2.0 aimed at making the reforms journey irreversible, strengthening processes and systems, and driving outcomes.
  • Significant progress is seen across six themes of the Reforms Agenda, with the highest improvement seen in the themes of ‘Responsible Banking’, ‘Governance and HR’, ‘PSBs as Udyamimitra for MSMEs’, and ‘Credit off-take’.
  • PSBs have adopted tech-enabled, smart banking in all areas, setting up retail and MSME Loan Management Systems for reduced loan turnaround time and PSBloansin59minutes.com and TReDS for digital lending.
  • PSBs have instituted real-time visibility to retail and MSME customers on the status of their loans.
  • Most branch-based services are now accessible from home and mobile, including in local languages.
  • EASE Reforms Index has equipped Boards and leadership for effective governance, instituted risk appetite frameworks, created technology- and data-driven risk assessment and prudential underwriting and pricing systems, introduced Early Warning Signals (EWS) systems and specialised monitoring for time-bound action in respect of stress, put in place focused recovery arrangements, and established outcome-centric HR systems.