Money & Banking

PSBs to float company for doorstep banking

K Ram Kumar Mumbai | Updated on September 18, 2020 Published on September 18, 2020

This initiative is aimed at helping PSBs retain, win back lost marketshare

Public sector banks (PSBs) are working towards floating a company to house the operations of their recently-launched PSB Alliance for Doorstep Banking (DSB) initiative.

In a move that could prove to be a game-changer vis-a-vis how banking services are offered and consumed, all 12 PSBs under the aegis of the Indian Banks’ Association (IBA) have joined forces to initially offer 10 non-financial services at customers’ doorstep.

These services are being offered through DSB agents at 100 top deposit centres across the country. These banks are also planning to scale up the number of centres where DSB services will be available down the line.

This move by the 12 PSBs to jointly start a company for providing DSB service comes amid cut-throat competition in the banking space, with private sector banks nibbling away at their dominant market share in deposits and advances in the last few years.

This initiative could help PSBs retain and win back lost marketshare.

Also read: FM unveils doorstep banking services by PSBs

IBA is looking to fill the position of Chief Executive Officer (CEO) for the company that will eventually run PSB Alliance for DSB.

Currently, one senior official each from the 12 PSBs have been deputed to IBA to coordinate the day-to-day operations of PSB Alliance for DSB.

Under the initiative, customers are offered a pick-up facility for certain non-financial services — cheque, draft, pay order, new cheque book requisition slip, 15G/15H Form, IT/GST challan, and standing instruction request.

Further, the feet-on-street (agents) too deliver certain non-financial services — account statement; non-personalised cheque book, draft, pay order; term deposit receipt, acknowledgment, etc; TDS/ Form 16 certificate issuance, and pre-paid instrument/ gift card.

Cash withdrawal and deposit facilities will also be offered starting next month.

Specifically, the target customers for DSB are senior citizens, defense personnel, Central Reserve Police Force personnel, widows, differently-abled, students, salaried employees, shopkeepers and street vendors.

All service requests generated (via mobile app, web portal and toll free number) by PSB customers up to 1500 hours will be completed within three hours of request generation. Service requests generated after 1500 hours will be completed by 1300 hours next working day.

DSB services are chargeable, with the current rate being ₹75 plus GST per financial/ non-financial service.

The 12 PSBs, which are part of the PSB Alliance for DSB (anchored by UCO Bank), have engaged Atyati Technologies Pvt Ltd and Integra Microsystem Pvt Ltd to provide ‘DSB through Universal Touch Points’ facility to their customers.

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Published on September 18, 2020
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