Tuesday, October 26, 2021
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Nirmala Sitharaman sets the agenda for state banks. Ease 4.0 reform highlights

Finance minister Nirmala Sitharaman detailed the way ahead for India’s public sector banks as part of her government’s EASE 4.0 policy. EASE 4.0 or Enhanced Access and Service Excellence is the Centre’s reform agenda public banks aimed at institutionalising clean and smart banking.

Sitharaman met heads of PSBs to review financial performance of the lenders and progress made by them to support the economy battered by COVID-19 pandemic.

At the presser post launch in Mumbai, Finance Secretary Debashish Panda announced changes to the pension payouts of Public Sector Banks.

The changes instituted are set to increased the pension payout to bank employees, with all of them set to get an even 30% of their pay. The Centre has also asked banks to increase the employer contribution to the pension corpus to 14%, from the current 10%.

“Pension payouts to bank employees could increase to Rs 30,000-Rs 35,000 from the earlier cap of Rs 9284,” Panda said.

The key highlights from the EASE 4.0 address:

  • Bank employees’ pension pay out hiked to 30% of last-drawn salary
  • Employer contribution to pension corpus now up to 14%, from 10% previously
  • Banks asked to make specific plans for North East, Bengal, Odisha
  • Centre estimates inflation will remain within 4-6% band.
  • “Too early to say credit is not picking up,” said Sitharaman.
  • Government to have some presence in life insurance, general insurance and reinsurance
  • Duties reduced on number of products on edible oils to keep inflation in check
  • Banks have approached RBI this week for license on NARCL
  • Proposal to offer guarantee on bad loans is under consideration
  • India may announce rules allowing companies to list overseas in the next budget in February

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