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EASE 2.0 Banking Reforms Index

Topics Covered: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.

EASE 2.0 Banking Reforms Index:


Context:

Recently, the EASE (Enhanced Access and Service Excellence) 2.0 Banking Reforms Index on performance of Public Sector Banks (PSB) from March 2018-2020 was released and best performing banks on EASE were felicitated.

What is EASE Reforms Agenda?

  • It was launched in January 2018 jointly by the government and PSBs.
  • It was commissioned through Indian Banks’ Association and authored by Boston Consulting Group.
  • EASE Agenda is aimed at institutionalizing CLEAN and SMART banking.
  • The Index measures performance of each PSB on 120+ objective metrics.

What is EASE 2.0?

EASE 2.0 builds on the foundation of EASE 1.0 and introduces new reform Action Points across six themes to make reforms journey irreversible, strengthen processes and systems, and drive outcomes.

The six themes of EASE are:

  1. Responsible Banking.
  2. Customer Responsiveness.
  3. Credit Off-take.
  4. PSBs as UdyamiMitra (SIDBI portal for credit management of MSMEs).
  5. Financial Inclusion & Digitalisation.
  6. Governance and HR.

banks

Performance of PSB on EASE 2.0 Index:

  1. The Public Sector Banks (PSBs) have shown a healthy trajectory as their overall score increased by 37% between March-2019 and March-2020.
  2. The PSBs have adopted tech-enabled, smart banking in all areas, setting up retail and MSME Loan Management Systems for reduced loan turn-around time and PSBloansin59minutes.com and TReDS for digital lending.
  3. The Bank of Baroda, State Bank of India, and erstwhile Oriental Bank of Commerce were felicitated for being the top three in the ‘Top Performing Banks’ category.
  4. The Bank of Maharashtra, Central Bank of India & erstwhile Corporation Bank were awarded in the ‘Top Improvers’ category.

InstaLinks:

Prelims Link:

  1. Ease Reforms Agenda has been commissioned by?
  2. Differences between EASE 1.0 vs 2.0 vs 3.0.
  3. Themes of EASE 2.0.
  4. Top three in the ‘Top Performing Banks’ category.
  5. Banks in ‘Top Improvers’ category.

Mains Link:

What is EASE 2.0 Banking Reforms Index? How are PSBs ranked?

Sources: PIB.