Government banks initiative to give you better banking facility, new company to be formed

Digital Banking Infrastructure Corporation

New Delhi: Public Sector Banks (PSBs) are preparing to set up a new company to build the digital infrastructure for them. With the help of the new company, these government banks will be able to provide better facilities to their customers in this era of digital banking. These banks are mobilizing resources to prepare the Digital Banking Infrastructure Corporation. The new company will help these banks develop tie-up and doorstep banking software with fintech companies. Just last week, there was a meeting with the Secretary of the Department of Financial Services of the Ministry of Finance regarding this idea. An Antarctic Committee has also been constituted under the Indian Banks Association to work on this initiative. The business newspaper Mint has given information about this in a report.

In fact, the corona virus epidemic has forced people to take advantage of banking services in new ways. The new era of digital and doorstep banking has made a big difference in the attitude of people towards banks. It is believed that this situation will continue with regard to banking services. Very few people would like to go to a bank branch.

Digital Banking Infrastructure Corporation

Banks are making big investments in the field of digital banking
The report quoted a source as saying that nowadays all banks are adopting digital lending platforms. Every bank is investing in this direction. The size of their investment is very large, which is not possible for all banks. However, this can be done under the leadership of a large government bank or under the PSB Alliance. This will provide a uniform platform for everything from providing loan products to IT initiatives.

In the direction of digital banking services, government banks are considering issuing a Request for Proposal (RFP) for service providers and technology partners. It is possible that in addition to sharing software, these government banks may also share hardware that is used in banks’ back offices and servers.

Explain that even now PSB shares infrastructure under Alliance. Under this, 12 banks have entered into an agreement under one initiative. UCO Bank has a leading role in this, providing banking services with the help of two technology companies.

It is noteworthy that in the era of corona virus, banks resorted to digitization for their services. Opening a digital account was one of them. Under this initiative, banks were facilitating the opening of bank accounts through Video KYC.