- GS 3: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.
- The finance minister has unveiled the fourth edition of the Public Sector Bank (PSB) Reforms Agenda ‘EASE 4.0’ for 2021-22—tech-enabled, simplified, and collaborative banking.
- EASE 4.0 (Enhanced Access and Service Excellence agenda) is a common reform agenda for PSBs aimed at institutionalising clean and smart banking.
- PSBs have recorded phenomenal growth over four quarters since the launch of EASE 3.0 Reforms Agenda in February 2020.
- All the banks have, collectively, done well and come out of Prompt Corrective Action (PCA) despite service extended during pandemic, according to the EASE 4.0 agenda.
EASE 3.0 awards
- State Bank of India, Bank of Baroda and Union Bank of India have won the awards for best performing banks for PSB EASE 3.0 based on the EASE 4.0 index.
- Indian Bank won the award for the best improvement from the baseline performance.
- SBI, Bank of Baroda, Union Bank of India, Punjab National Bank and Canara Bank won the top awards in different themes of the PSB Agenda EASE 3.0 reforms.
- Banks are being asked to interact with export promotion councils.
- Nature of banking is changing and the industry realised avenues of raising funds are also changing.
- PSBs, to remain relevant, need to catch-up the changing environment.
- The banks have also been directed to interact regularly with the Federation of Indian Exporters Organisation (FIEO) so the exporters don’t have to shuttle between various bankers.
- Banking industries have option of raising funds even from outside banking sector. We need a thorough study to understand its various facets and thus target credit where it is needed.
- Sunrise sectors such as the fintech sector need support from banks. These sectors can in turn assist banks in technological advancements.
- They both can grow together with adequate support to these sectors.
- Banks have also been pursued to work with state governments to push the ‘one district, one export’ agenda.