Public sector banks Current Affairs - 2019
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PSBloansin59minutes.com which was launched by Prime Minister Narendra Modi in 2018 has emerged as the country’s largest online lending platform, with loan sanctions exceeding over Rs 35,000 crore.
The portal provides credit up to Rs 1 crore to micro, small and medium enterprises (MSMEs) in just 59 minutes or less than an hour.
How the online portal has eased the access to loan?
- The online portal has reduced the turnaround time from 20-25 days to 59 minutes and upon approval, the loan is disbursed in 7-8 working days.
- The automated loan processing system together with ease has helped in fostering transparency.
- The online portal has aided in eliminating the discretion at the bankers’ end, as in-principle approval of loans does not require human intervention.
- 62 lakh MSME units have been given in-principle approvals, while 1.12 lakh have got a final nod, since the launch.
How Portal Works?
- Through the Portal, the MSMEs apply for a loan using their GST registration as the portal is integrated with GST server at the back-end as well as IT, credit bureaus and banks.
- The portal then quickly scores the applicant on individual models of lenders.
- Borrowers then select the lender and branch which is willing to grant “in-principle” approval.
- The approval is then presented to the branch selected along with necessary documents. The loan is then
Since the portal links data points, no one can game the system as there is no scope for information asymmetry.
The think tank Niti Ayog had hosted the conference on Future of Indian Banking and role of technology Tomorrow in association with the Foundation for Economic Growth and Welfare (EGROW Foundation).
The conference was inaugurated by Dr Rajiv Kumar, Vice Chairman, NITI Aayog. The speakers in the event included Rajiv Kumar, Secretary, Department of Financial Services, Dr K.V. Subramanian, Chief Economic Advisor, Dr Andreas Bauer, Senior Resident Representative, IMF, Dr Marius Vismantas, Lead Financial Sector Specialist, World Bank, Shri Sunil Mehta, Managing Director, Punjab National Bank.
About the Conference
The conference was aimed at increasing and elevating the discourse on the banking sector in India and help in developing insights to inform the continued evolution of the Indian banking sector for optimally supporting the growing credit needs of the Indian economy.
Research papers were presented on the following themes:
- Evaluating critical banking situation in the country, considering domestic and international developments.
- Recapitalization of Public Sector Banks, Insolvency and Bankruptcy Code.
- The future course of Prompt Corrective Action and recovery.
- Alternatives to Basel Norms, if any.
- Privatization, Mergers and Acquisitions, etc.
The event witnessed the participation of more than 200 domestic and international participants, including policy makers, academicians, researchers, professionals, and students from various banks, universities and institutes.
The Foundation for Economic growth and Welfare (EGROW Foundation) is a non-profit, multi-disciplinary public policy organisation engaged in independent, high-quality research in the areas of macroeconomic policy, public welfare, national security and diplomacy.
The foundation aims to contribute to the formation of sound public policies, especially in India by providing research-based support to policymaking.