The finance ministry said on Monday that the share of public sector banks (PSBs) financial transactions carried out through digital channels has now increased. In a written response to Lok Sabha, the Minister of State for Finance, Dr Bhagwat Kisanrao Karad, claimed that nearly 72% of PSB financial transactions are now done digitally. The MoS for Finance also reported that digital banking and internet banking have now reached new heights. The minister said that financial transactions made through home and mobile channels have also increased.
Digital transactions in public sector banks
Minister of State for Finance Dr Bhagwat Kisanrao Karad said the share of financial transactions carried out through these methods has now increased from 29% in fiscal year 2018-19 to 76% in fiscal year 2018-19. fiscal year 2020-21. In a statement, the minister said the government has now taken a number of steps to facilitate digital banking, home banking and digital lending platforms.
Karad claimed that the use of Internet banking services has now increased slightly. Explaining his claims, the Minister said that the achievement was made possible through an increase in the average number of services offered (43), user-friendly features (135) and a regional language customer interface (8). Karad also mentioned that the introduction of end-to-end automated digital loans in larger PSOs for unsecured personal loans is also supporting the cause. He also added that loans to micro-enterprises, named “Shishu Mudra”, in five PSBs, and renewals of loans to micro, small and medium enterprises have also yielded results.
The minister informed that digital loan requests have also been activated. “The launch of digital retail loan applications through digital channels has been activated in the seven major PSBs. with retail disbursements of loan requests thus initiated in FY2020-21 amounting to Rs. 40,819 crore, ”the statement said.
Customer-driven, analysis-based credit offerings received a boost, resulting in Rs. 49,777 crore in new retail loan disbursements by the seven largest PSBs during the fiscal year (AF) 2020-21, added the statement from the Ministry of Finance. He went on to say that the 72% increase in PSB digital financial transactions is the result of such measures. According to the statement, active customers on digital channels also doubled, from 3.4 crore in FY2019-20 to 7.6 crore in FY2020-21.