In a big push for doorstep banking, the public sector banks (PSBs) have come together and joined forces to create a joint venture company to take banking services to the doorsteps of their customers by engaging banking correspondents, reports Economic Times.
The new company called PSB Alliance Private Limited will facilitate doorstep banking services for 12 public sector banks under a common standard operating procedure under the leadership of Rajinder Mirakhur who has been appointed as the chief executive of the new company.
Mirakhur is a banking sector veteran having previously served as the former chief general manager of the State Bank of India (SBI) and the former deputy chief executive of the Reliance Jio Payments Bank.
As per Mirakhur, the new entity will help lower the costs involved for PSBs in providing doorstep banking facilities. He said, "Currently, different PSBs engage different banking correspondents (BCs) for their doorstep banking services. With this company, we are hoping to provide resources which can be used by all PSBs at a low cost."
Mirakhur also said that each of the PSBs holds less than 10 per cent of the individual stake in the new company.
Meanwhile, Union Bank of India's managing director Rajkiran Rai also said that new entities gives the PSBs "economies of scale, economies of scale, collective bargaining and polling of resources".
"But most of all it gives us a collective knowledge pool which will help us to benefit from each other's experiences," Rai was quoted as saying.
An appeal from Swarajya
At Swarajya, we rely on our readers' support through subscriptions to sustain our media platform. Unlike larger conglomerates, we are unable to relentlessly chase advertising money — our model is largely built on your patronage.
Your support has never been more crucial. We work tirelessly to deliver 10-15 high-quality articles daily, ensuring you receive insightful content from 7 AM to 10 PM.
If you believe India's story has to be articulated in a way it has never been done before without shrugging it off, become a patron (or) subscribe now for ₹̶2̶4̶0̶0̶ ₹1999 and get 12 print issues, unlimited digital access for 1 year, a special India that is Bharat T-shirt (Offer ends soon).
We are counting on you!