Phases of EASE Reforms
EASE 1.0
According to the EASE 1.0 report, there was a noteworthy improvement in the performance of Public Sector Banks (PSBs) concerning the resolution of Non-Performing Assets (NPAs) in a transparent manner.
EASE 2.0
- EASE 2.0, which builds on EASE 1.0, introduced new reforms across six areas to ensure the transformation of PSBs is irreversible, improve their processes and systems, and achieve better results.
- The EASE index measures PSBs’ performance based on more than 120 objective metrics in areas such as customer service, responsible banking, and financial inclusion.
- The index’s transparent scoring system helps banks identify their strengths and weaknesses. Since the launch of EASE 2.0, PSBs have made significant progress in all six themes, with the biggest improvements in responsible banking, governance, HR, support for MSMEs, and credit off-take.
- The overall EASE index score of PSBs has increased by 37% from March 2019 to March 2020, with the average score rising from 49.2 to 67.4 out of 100..
EASE 3.0
- It is a program initiated by the Indian government to provide modern and innovative financial services to young India.
- It aims to digitize and improve the customer experience in public sector banks by introducing various features such as palm banking, banking on the go, and dial-a-loan.
- The government has also implemented management reforms to increase the efficiency and effectiveness of public sector banks.
- The program also emphasizes ethical finance, client reactivity, loan turn, and debt inclusion.
- The themes of EASE 3.0 include smart lending, tech-enabled banking, institutionalized prudent banking, governance, and outcome-centric HR, and deepening financial inclusion and customer protection.
- The program aims to bring effective solutions to the public sector banking industry, making it smarter and more high-tech.
- Through these reforms, public sector banks in India are transitioning to digitized and modern finance to meet the aspirations of young India.
EASE 4.0
- EASE 4.0 is a set of reforms introduced by the Indian finance minister for Public Sector Banks (PSBs) to enable smarter banking. The main areas of focus are co-lending with non-banking firms, digital initiatives, agriculture financing, and technological resilience. The reforms emphasize data analytics, automation, and digitization.
- The key aspects of EASE 4.0 include promoting analytics-based systems for pre-approved loans, MSME loans, and EMI offers, improving loan initiation processes, and establishing call center-based retail and MSME customer outreach in regional languages. Additionally, there are plans to automate agricultural loans and collaborate with the financial ecosystem for increased digital payments in rural areas. The EASE Index will measure the performance of each PSB and provide a comparative evaluation based on objective metrics.
- It aims to promote customer-centric digital transformation in PSBs by committing to tech-enabled, simplified, and collaborative banking. The reform proposes several themes to achieve this objective, such as 24×7 banking, a focus on the North-East region, the establishment of a bad bank, raising funds outside the banking sector, and leveraging the FinTech sector.
EASE 5.0
- The EASE Next program’s EASE 5.0 ‘Common reforms agenda’ was launched by Ms. Nirmala Sitharaman, Minister of Finance and Corporate Affairs, via video-conferencing in New Delhi on June 8.
- The program aims to help Public Sector Banks (PSBs) respond to changing customer needs, competition, and technology by prioritizing digital customer experience and integrated and inclusive banking.
- Each PSB will also develop a bank-specific three-year strategic roadmap that covers various topics, including business growth, profitability, risk, customer service, operations, and capability development.
- It is important for banks to engage with their customers to understand their needs and expectations while developing strong security mechanisms as they upgrade their technology initiatives.
Enhanced Access and Service Excellence (EASE) Program
The full form of the EASE Program is Enhanced Access and Service Excellence (EASE) Program. In January 2018, the Indian government and Public Sector Banks (PSBs) launched the EASE Reforms Agenda, which was commissioned by the Indian Banks’ Association and authored by the Boston Consulting Group. The Indian Banks’ Organisation, established in 1946, represents Indian banks and financial institutions in Mumbai. The EASE Agenda’s goal is to achieve CLEAN and SMART banking. The EASE Reforms Index evaluates each PSB’s performance using more than 120 objective indicators and provides a transparent grading approach that enables banks to identify their strengths and areas for improvement. The objective is to foster healthy competition among PSBs and drive modernization efforts by emphasizing data analytics, automation, and digitization. The EASE program has been providing a common set of reform objectives for PSBs since its inception, with the aim of enhancing profitability, asset quality, customer service, and digital capabilities through new-age reforms.
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