EASE 4.0 Reforms

Editor1 Sep 25 2021 Current Affairs

The Union 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.

 

Key points

  1. EASE 4.0 (Enhanced Access and Service Excellence agenda) is a common reform agenda for PSBs aimed for institutionalising clean and smart banking.
  2. PSBs have recorded phenomenal growth over four quarters since the launch of EASE 3.0 Reforms Agenda in February 2020.
  3. 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.

Exports

  1. Banks are being asked to interact with export promotion councils.
  2. 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.
  3. The banks have also been directed to interact regularly with the Federation of Indian Exporters Organisation (FIEO) so that the exporters don’t have to shuttle between various bankers.

Fund raising

Banking industries have option of raising funds even from outside the banking sector.

Fin-techs

  1. Sunrise sectors such as the fintech sector need support from banks. These sectors can in turn assist banks in technological advancements.
  2. They both can grow together with adequate support to these sectors.

District push

Banks have also been pursued to work with state governments to push the ‘one district, one export’ agenda.

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