Lok Sabha Question No. 6 (UNSTARRED), answered on 2021-07-19
Subject: Promotion of Digital Banking
Ministry: FINANCE
Asked by: Sudhakar Tukaram Shrangre, Ramesh Bidhuri

## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## LOK SABHA UNSTARRED QUESTION NO-6

ANSWERED ON- 19/07/2021

## PROMOTION OF DIGITAL BANKING

## 6. SHRI SUDHAKAR TUKARAM SHRANGARE SHRI RAMESH BIDHURI

Will the Minister of FINANCE be pleased to state:-

- (a) whether the Government is considering to set up a Digital Banking Infrastructure Corporation;
- (6) if s0, the details thereof; and
- the steps taken by the Government to facilitate digital banking, door step banking services, and also digital lending platforms to the across the countty? people

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF FINANCE

## (DR BHAGWAT KARAD)

(a) to (c): Government has taken & number of steps to facilitate digital banking, doorstep banking services and digital platforms These include, inter-alia, the following: lending

- (2)Online bill discounting for MSMEs has been enabled on a competitive basis through Public Sector Banks (PSBs) onboarding onto the Trade Receivables Discounting System (TReDS) platform and the proportion of online discounted bills has grown rapidly:
- (1)Initiation of digital has been made contactless through PSBloansin59minutes:com, triangulation of credit bureau, income-tax and and services tax (GST) data, to provide online in principle approval for MSME loans: lending using goods
- (3)Government's Jeevan Pramaan' initiative for pensioners has enabled senior citizen pensioners the to their annual life certificate online: facility update
- Enhanced access to Mobile and Internet banking has been enabled through an increase in the average number of services offered (43), customer-friendly features (135) and regional language customer-interface (8);
- (4)Under the Government-initiated PSB Reforms Agenda,
- () End-to-end automated digital lending has been introduced in larger PSBs for unsecured personal loans (in five PSBs), loans to micto-enterprises (Shishu Mudra in five PSBs) and renewals of loans to micto, small and medium enterprises (in three PSBs);
- (i) Digital retail loan request initiation through digital channels has been enabled in all the seven initiated in the financial year (FY) 2020-21 amounting to Rs 40,819 crore; large

As a result,  nearly 72% of financial transactions of PSBs are nOW done through digital channels, with doubling of customers active on digital channels from 3.4 crore in FY2019-20 to 7.6 crore in FY2020-21, and the share of financial transactions undertaken through home and mobile channels has increased from 29% in FY201819 to 76%/ in FY2020-21.

- (iv) Customet-need-driven; analytics-based credit offers have been given an impetus, resulting in Rs 49,777 crore of fresh retail disbursements by the seven larger PSBs in the financial year (FY) 2020-21. loan
- (S)PSB Alliance, an initiative of all PSBs and Indian Banks Association, has launched doorstep banking services for all customers, including senior citizens, through call centre   (1800-121-3721 and   1800-103-7188),  web (https:/ / psbdsb.in/ and mobile app (Google Store). At   present 13 services are offered in 100 cities across include cash withdrawal or deposit; pick-up of or demand draft or pay order pick-up of cheque-book requisition slip, pick-up of income-tax forms no. 15G/15H, pick-up of income-tax/GST challan, and delivery of tax deduction at source (TDS) and Form-16 certificates for income-tax purposes: portal Play being cheque etc ,

There is no proposal under consideration of the Government for up of a Digital Banking Infrastructure Corporation (DBIC) As per inputs from banks, some PSBs have held discussions to set up a corporation to create a common digital  infrastructure platform as a joint initiative of the banks, with a view to enable enhanced access to consumers and businesses for credit offerings setting xxxxx