PSBs encourage co-lending with NBFCs, digital technology and agricultural financing as part of the Ease 4.0 index


New Delhi: Co-lending with non-bank companies, digital, agricultural finance and technological resilience for 24/7 banking should be part of the Ease 4.0 index, a reform program for 2021 -2022 for public sector banks, sources said.

Launched in January 2018, Improving Access and Service Excellence (Ease) is the reform program common to all public sector banks (PSBs) aimed at institutionalizing a clean and smart bank.

The Ease 4.0 reform agenda for the 2021-22 fiscal year is expected to be unveiled by Finance Minister Nirmala Sitharaman later this week, sources said.

It is expected to report the Ease 3.0 index results for 2020-2021, they said, adding that PSBs would be rated on various indices for the year.

Sources said that this year, PSBs will focus on introducing and promoting new analytics-based offers for existing retail customers, such as pre-approved auto loans, EMI offers on online shopping. and also for existing MSME customers.

These offers will be based on banking transactions, tax and GST returns, transactions on e-commerce portals and other operational data, they added.

In line with the proposed reform program, banks will take advantage of partnerships with third parties, including agro-tech companies, and strive to automate the processing and sanctioning of agricultural loans on the basis of a field visit, d ” borrower interaction and risk assessment in states with digitized land registers.

Under the co-lending model with non-bank financial corporations, banks will take 80 percent exposure, while NBFCs will provide customer service and complaint resolution.

The finance minister is due to meet with PSB chiefs on August 25 to review the financial performance of lenders and their progress in supporting the economy affected by the COVID-19 pandemic.

Given the importance of the banking sector in generating demand and stimulating consumption, sources said the meeting with CEOs and CEOs of PSBs is considered important.

The Minister of Finance will review progress made by banks in promoting programs including the Emergency Line of Credit Guarantee Program (ECLGS) and PM Street Vendor’s AatmaNirbhar Nidhi (PM SVANidhi) unveiled by the government in part of a series of stimulus packages since March of last year.

This story was posted from an agency feed with no text editing. Only the title has been changed.

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