PSBs in talks for creating common digital infrastructure platform

Will set up a corporation to enable enhanced access to customers and businesses for credit offerings. This is in line with govt steps to boost digital banking and promote digital lending

Public sector banks (PSBs) are in discussion to set up a corporation for creating a common digital infrastructure platform as a joint initiative, the Parliament was informed.

The Digital Banking Infrastructure Corporation (DBIC) would be set up to enable enhanced access to customers and businesses for credit offerings. This is in line with a number of steps initiated by the government to facilitate digital banking and promote digital lending.

Minister of State for Finance Bhagwat Karad, in response to a query in Rajya Sabha, also said that retail loan disbursements amounting to Rs 40,819 crore have been made by seven large PSBs through digital channels in the financial year 2020-21.

About 72 per cent of financial transactions of public sector banks are now done through digital channels with active customers doubling from 3.4 crore in FY20 to 7.6 crore in FY21, the Parliament was informed.

The share of financial transactions through doorstep banking initiative of public sector banks, and through mobile channels has increased from 29 per cent in FY19 to 76 per cent in FY21. Presently, public sector lenders provide doorstep services that include cash withdrawal or deposit, pick up of cheque or demand draft, pick up of cheque book requisition slips, among others, to all customers in 100 cities across the country.