Table of Contents
BACKGROUND
- PSB Reforms EASE Agenda is a common reform agenda for PSBs aimed at institutionalizing clean and smart banking.
- It was launched in January 2018.
- Subsequent edition of the program ― EASE 2.0 built on the foundation laid in EASE 1.0 and furthered the progress on reforms.
- In EASE 2.0, the government had proposed- Pushing liquidity in the public sector banks,
- Reconstituting the management committee and possible mergers among the ideal partners in the Indian banking sector.
- Finance Minister Nirmala Sitharaman launched the EASE (Enhanced Access & Service Excellence) 3.0 reform agenda.
- EASE 3.0 agenda aims at providing Smart, Tech-enabled public sector banking for aspiring India.
- This launch of EASE 3.0 would change the customer’s experience at the Public Sector Banks.
- New features that customers of public sector banks may experience under EASE 3.0 reforms agenda include facilities like:
- Palm Banking for “End-to-end digital delivery of financial service”.
- “Banking on Go” via EASE banking outlets at frequently visited spots like malls, stations, complexes, and campuses.
THE IDEA BEHIND EASE 3.0 AGENDA
- Establishing paperless and digitally-enabled banking at places where people visit the most.
- The government aims to focus on digitalization in the Public Sector Banks (PSBs) among themes that include-
- Responsible banking,
- PSBs as Udyami Mitra,
- Customer responsiveness,
- Credit take-off,
- Deep financial inclusions.
PERFORMANCE OF PSB ON EASE 2.0 INDEX
OUTCOMES
- Gross NPAs reduced from Rs 96 lakh crore (14.6%) in March-2018 to Rs 7.17 lakh crore (11.3%) in December-2019;
- A sharp decline in fraud occurrence from 65% of advances during FY10-FY14 to 0.20% in FY18-FY20.
- Record recovery of Rs 2.04 lakh crore in FY19-FY20.
- Number of PSBs under PCA down to 4.
- 12 PSBs reporting profits in FY20.