Page 8 - Banking Finance December 2020

BANK UPDATE

nothing but an opportunity to establish will be available down the line. Service requests generated after 1500
that the bank had not breached this This move by the 12 PSBs to jointly hours will be completed by 1300 hours
important 'duty' and that it always start a company for providing DSB ser- next working day.
maintains transparency and accuracy vice comes amid cut-throat competi- DSB services are chargeable, with the
in the accounts of its customers," the
tion in the banking space, with private current rate being Rs. 75 plus GST per
order said. The DRT, through another
sector banks nibbling away at their financial/ non-financial service.
order, also clarified whether the
dominant market share in deposits and The 12 PSBs, which are part of the PSB
authorised officer has the power to
advances in the last few years. Alliance for DSB (anchored by UCO
extend the time to deposit balance 75
This initiative could help PSBs retain Bank), have engaged Atyati Technolo-
per cent of sale price by the auction
purchaser. and win back lost market share. gies Pvt Ltd and Integra Microsystem
Pvt Ltd to provide ' DSB through Uni-
The DRT order said neither the IBA is looking to fill the position of Chief versal Touch Points' facility to their
SARFAESI Act nor the rules made there Executive Officer (CEO) for the com- customers.
under empower the authorised officer pany, which will eventually run PSB
to extend the time for deposit or the Alliance for DSB. FM sets out bank account-
purchaser to enter into an agreement Currently, one senior official each from
with the authorised officer for exten- the 12 PSBs, have been deputed to IBA Aadhaar linking deadline
sion of time for deposit of the full or to coordinate the day-to-day opera- Union Finance Minister Nirmala
part of the 75 per cent sale price. tions of PSB Alliance for DSB. Sitharaman asked all banks to ensure
On the contrary, the law and rules Under the initiative, customers are all bank accounts are Aadhaar-seeded
mandate that the extension of time offered a pick-up facility for certain by March 31, 2021 and linked with PAN
for payment of 75 per cent of the bal- non-financial services - cheque, draft, cards wherever necessary.
ance sale consideration shall be by pay order, new cheque book requisi- Addressing the annual general meet-
entering into a written agreement tion slip, 15G/15H Form, IT/GST challan, ing of the Indian Banks' Association, the
between the secured creditor and the and standing instruction request. Fur- Finance Minister said, "Ideally by De-
purchaser, it stated. ther, the feet-on-street (agents), too, cember, if not by March 31, 2021, ev-
deliver certain non-financial services - ery account should have a PAN where
PSBs to float company for account statement; non-personalised needed and applicable and Aadhaar in
cheque book, draft, pay order; term- every case."
doorstep banking deposit receipt, acknowledgment, etc;
Public sector banks (PSBs) are working TDS/ Form 16 certificate issuance, and Sitharaman also advised banks to issue
towards floating a company to house pre-paid instrument/ gift card. RuPay cards as the first option to cus-
the operations of their recently Cash withdrawal and deposit facilities tomers. Urging bankers to promote
launched PSB Alliance for Doorstep will also be offered starting next RuPay cards, she said National Pay-
Banking (DSB) initiative. ments Corporation of India can become
month. a brand India product. Whenever issu-
In a move that could prove to be a
Specifically, the target customers for ing a card, you must first issue a Rupay
game-changer vis-a-vis how banking
DSB are senior citizens, defense per- card, the Finance Minister said in her
services are offered and consumed, all
sonnel, Central Reserve Police Force virtual address.
12 PSBs under the aegis of the Indian personnel, widows, differently-abled,
Banks' Association (IBA), have joined students, salaried employees, shop- "Whoever needs the card, RuPay will
forces to initially offer 10 non-financial keepers and street vendors. be the only card you will promote," she
services at customers' doorstep. said. She said there should not be any
All service requests generated (via unverified account in the system. "I will
These services are being offered mobile app, web portal and toll free not be patient to hear that there still
through DSB agents at 100 top deposit
number) by PSB customers up to 1500 exist accounts which are not Aadhar
centres across the country. These
hours will be completed within three seeded, and linked with PAN cards
banks are also planning to scale up the hours of request generation. wherever needed beyond December
number of centres where DSB services 31.

8 | 2020 | DECEMBER | BANKING FINANCE