The Union Finance Minister recently conducted the annual performance review of public sector banks (PSBs) and launched the fourth instalment of Enhanced Access and Service Excellence Reform Agenda, known as EASE 4.0. This initiative is primarily aimed at encouraging the concept of clean and smart banking within the institutions.
EASE 4.0: What It Entails
EASE 4.0 compels PSBs to adopt technology-integrated, simplified, and collaborative approaches to banking, giving priority to customer-centric digital transformation. Several key themes have been proposed under this framework.
24×7 Banking
One of the major themes introduced in EASE 4.0 is new-age 24×7 banking. This initiative leans heavily on resilient technology to ensure continuous availability of banking services.
Focus on North-East
Under EASE 4.0, banks have been urged to conceptualize and implement specific schemes for the North-East region.
The Bad Bank Initiative
The proposition of a bad bank is also under consideration and is close to getting its license. A bad bank typically purchases bad loans and other illiquid holdings from another financial institution.
Raising Funds Outside the Banking Sector
In light of changing times, industries can now raise funds from external sources outside the banking sector. Banks are also following suit and raising funds through various channels.
Leveraging Fintech Sector
The Fintech or Financial Technology sector is another area that can offer technological assistance to banks and may benefit from support from the banking sector.
Export Promotion
As part of EASE 4.0, banks are encouraged to collaborate with state governments to promote the ‘one district, one export’ scheme.
About EASE Agenda
The EASE Agenda was initiated in January 2018, jointly by the government and PSBs. The Indian Banks’ Association commissioned it, and Boston Consulting Group authored it.
Various Stages under EASE Reforms Agenda
EASE reforms have gradually evolved, each version building upon its predecessor. EASE 1.0 primarily focused on resolving Non Performing Assets transparently. On the other hand, EASE 2.0 introduced new reform action points across six themes to make the reform process constant, strengthen systems and drive outcomes. The agenda of EASE 3.0 is to enhance ease of banking on all customer experiences using technology.
Performance Under EASE Reforms Agenda
The EASE Reforms Index measures the performance of each PSB based on 120+ objective metrics. The primary goal is to stimulate change by fostering healthy competition among PSBs. PSBs have recorded remarkable growth over the four quarters since the launch of EASE 3.0 Reforms Agenda in February 2020.
Last Modified: February 13, 2024