What is the News?
The Union Minister of Finance and Corporate Affairs has unveiled the fourth edition of the Public Sector Bank (PSB) Reforms Agenda ‘EASE 4.0’ for 2021-22.
- Enhanced Access and Service Excellence(EASE) is a common reform agenda for Public Sector Banks (PSBs). It is aimed at institutionalizing clean lending, better customer service, simplified and enhanced credit and robust governance and HR practices.
- The EASE 1.0 was aimed at enabling banking from home, effective grievance redressal and responsible banking through monitoring of large-value stressed loans among others.
- The EASE 2.0 was launched in FY20 to further build on the foundation of EASE 1.0. It focussed on CLEAN and SMART banking.
- The EASE 3.0 was launched in FY21. It focuses on the transformation of Public Sector Banks(PSBs) into Digital and Data-driven Banks through smart lending, Technology enabled ease of Banking, Credit@click, Dial-a-loan, Prudent Banking among others.
Achievements of EASE 3.0:
- Public Sector Banks(PSBs) have reported healthy profits in FY21 as compared to losses in FY20. This is the first year when PSBs have reported a profit after five years of losses.
- The total gross non-performing assets stood at Rs. 6.16 lakh crore as of March 2021 – a reduction of Rs. 62,000 crore from March 2020 levels.
- Nearly 72% of financial transactions happening at PSBs are now happening through digital channels.
- PSBs are now offering services across call centres, Internet banking, and Mobile banking in 14 regional languages.
- EASE 4.0 aims to further the agenda of customer-centric digital transformation and deeply embed digital and data into PSBs’ ways of working.
- Themes: The key themes under EASE 4.0 are:
- Smart Lending
- New Age 24×7 banking with resilient technology
- Data-Enabled agricultural financing
- Collaborative banking for synergistic outcomes.