Eying benefits from digital banking, banks are now looking at building Unified Recovery Interface (UPI) for enhancing efficiency, reducing costs and getting good prices for properties of defaulters. This would be managed by PSB Alliance Ltd, a company set up by all public sector banks in the country.
M V Rao, chairman, Indian Banks’ Association (IBA), said: “Till now we had Unified Payment Interface (UPI), a product developed by National Payment Corporation Ltd (NPCI). The second leg that is coming is Unified Lending Interface (ULI). There is a thought process in PSB Alliance that after the payment and lending side, the important aspect that is left out is recovery.”
With the bank balance certificate process in place, now Unified Recovery Interface will come through PSB Alliance. This will give comfort to bankers that when they lend this, the process will run for the recovery also, so there may not be many challenges in collection management. This will bring down the cost of collections, Rao said. He was speaking at the banking industry event “FIBAC 2024”, organised by IBA and Federation of Indian Chamber of Commerce and Industry (Ficci).
A senior public sector banker said PSB Alliance is now holding the reins of e-auction portal ebkray. It works as a platform for lenders to sell properties that have been mortgaged for loans which are not being paid. Insolvency and Bankruptcy Board of India (IBBI) and Debt Recovery Tribunal (DRT) have agreed to be part of this portal. IBBI and PSB Alliance are building a program where entire operations will be run through application and recorded. This would also help to get a better price for properties put on the block, he added.
Meanwhile, IBA is working on designing a special apprenticeship program for the banking system, especially for those who are not highly qualified or passed out of institutions like Indian Institute of Technologies (IITs).
Sunil Mehta, chief executive, IBA, said the industry lobby group was in discussion with the Ministry of Corporate Affairs for the scheme. The apprenticeship scheme will target those who have qualifications but need upgradation and are in the age bracket of 21-25 years. The aim is to groom average students with some training and skills. There are many areas in banking which do not require highly skilled persons. The areas include marketing and recovery, he added.