The public sector banking (PSB) arena is set for a major transformation courtesy several moves made by the Central Government. Along with major capital infusion into ailing PSBs, the Government has taken several other steps with a view towards making the sector more efficient. Several bank mergers have also been proposed in this regard.
Doorstep banking solutions is something that has been in the works for a very long period of time although not much has emerged in terms of concrete steps till now. Doorstep banking is something that will soon be started by several public sector banking (PSB) entities for the convenience of customers. This is deemed necessary by state-run lenders since they are losing out to private sector lenders who already have such doorstep banking solutions in place, particularly for privilege customers or even senior citizens, the majority of whom will benefit from such initiatives.
More about doorstep banking solutions by PSBs
PSBs will be offering doorstep banking for millions of their customers in the country. This will include the doorstep banking facility for withdrawal of cash and also for cash deposits. This will naturally ease life for those who are disabled and also those who are senior citizens. The doorstep banking facility will be initially provided for those who are senior citizens and also those who are disabled. These are people who find it really hard to visit banking branches and will need to be serviced at home itself.
Doorstep banking has already been recommended quite a few years back by the Reserve Bank of India (RBI) although it has taken some time to be seriously implemented. Public sector banks have now united under this common mission and a common service provider may also get the responsibility for handling these tasks. UCO Bank has already floated its RFP (Request for Proposal) on the behalf of all public sector banking entities, seeking private organizations for execution of this doorstep banking facility which will be aided by a website, call centre and mobile app. These will be the platforms for lodging service requests.
What doorstep banking will encompass
- Financial Transactions including cash withdrawals and deposits.
- Non-Financial Transactions of several types.
- Cheque pickup and drafts will be available.
- Request statement of account.
- Pickup of new bank cheque book and requisition slip.
- Delivery of non-personalized cheque books, term deposit receipts, drafts, etc.
- Taking 15G, 15H forms for receiving exemptions on FDs from TDS.
- Accepting I-T challans.
- TDS/Form-16 certificate issuing.
- Delivery for pre-paid instruments like gift cards.
- Issuing of standing instructions whenever required.
The service provider that is hired by the public sector lenders will be offering agents. These agents will be offering financial and non-financial services, particularly in case of the withdrawal and deposit facility for cash via hand-held devices. This will be implemented in the second phase of this initiative.
After being offered to the disabled and senior citizens, this project will be extended for regular customers who may have to shell out a nominal charge if they wish to avail of doorstep banking without going to their branches as per reports. Doorstep banking is a vital component of the EASE (Enhanced Access and Service Excellence) blueprint of the Government, under which banks will be launching this initiative in addition to common working hours and branch revamp exercises. Specific service regulations have been mandated by this RFP, making it compulsory for banks to respond to service requests on the same itself till a specific timeline.
Requests made after this timeline will be handled in the first half of the next day itself. A deal will be signed for three years with a contractor by the banks and this can be extended by another couple of years.