The Account Aggregator Ecosystem structure went live in Sept 2021. The environment assists loan specialists with utilizing on computerized information gained by taking assent from the clients, giving them a consistent excursion, and killing the need of actual documentation.
FIU (Financial Information User) can demand for information from the FIP (Financial Information User) in light of a straightforward assent given by the client on their Account Aggregator handle.
It is a pivotal turning point for the AA environment as Union Bank of India turned into the First Public Sector Bank to Go live on the Account Aggregator Framework. Association Bank will be both FIP (Financial Information Provider) and FIU (Financial Information Provider) empowering its clients to share information carefully on an ongoing premise.
Association Bank of India has banded together with Perfios Software Solutions Pvt. Ltd., a Sahamati empanelled TSP, to carry out a full-stack answer for Financial Information Providers (FIP) and Financial Information Users (FIU) according to the ReBIT rules on the bank's premises....READ MORE
The biggest ever consolidation exercise in the public sector banking space is slated to take shape on Wednesday when six PSU lender will be merged into four in a bid to make them globally competitive.
The exercise assumes significance as it is taking place at a time when the entire country is under the grip of COVID-19 outbreak. It has triggered 21-day lockdown to contain the spread of the deadly virus.
Experts said merger at this point of time will not be very smooth and seamless. However, heads of the anchor banks are exuding confidence. "We don't foresee any problem it is going as per the plan. We have reviewed in the light of this situation also. Certain modification in implementation. We have done so that there is not any disruption for employees and customers. We are ensuring zero disruption," Union Bank of India Managing Director Rajkiran Rai G told PTI.
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The four anchor banks -- PNB, Canara Bank, Union Bank and Indian Bank -- are postponing some part of the implementation and processes due to the lockdown. "For merging banks, we have not changed some of the process like loan process etc, which we proposed to do earlier. However, because of the prevailing situation we will be continuing old system till the situation comes under control," he said.
With the merger, the bank looking at more than Rs 2,500 crore of synergy benefits in the next three years, he added. As per the mega consolidation plan, Oriental Bank of Commerce and United Bank of India will merge into Punjab National Bank (PNB); Syndicate Bank into Canara Bank; Andhra Bank and Corporation Bank into Union Bank of India; and Allahabad Bank into Indian Bank.
Following the consolidation, there will be seven large public sector banks (PSBs), and five smaller ones. There were as many as 27 PSBs in 2017. The total number of public sector banks in the country will come down from 18 to 12 beginning next financial year.
Speaking on preparedness, Indian Bank MD Padmaja Chunduru said harmonisation of products -- both on the loan and deposit sides -- has been completed and the same products will be offered to all customers.
She also said all the deposit and loan products, including access to Indian Bank's emergency credit lines launched in the wake of Covid-19 would be made available to the customers of Allahabad Bank.
"We have focused all our resources on the important things that matter for day one -- treasury integration has happened and IT integration to the extent of product harmonization and rolling out of the same products has happened," she said.
She expects the entire IT integration to be completed by December 2020. Following this merger, PNB will become second largest after the State Bank of India (SBI), Canara Bank fourth, Union Bank of India fifth and Indian Bank seventh biggest public sector lender.
Commenting on the consolidation, Canara Bank MD L V Prabhakar said, "We are delighted that following the amalgamation as a single legal entity, we will become a powerful banking institution that is globally competitive and efficient working towards providing differentiated customer experience excellence across all our products and services". The combined entity will be large but with an unchanged approach to grass-root banking, customer delight, and satisfaction, Prabhakar said.
Public sector lender Union Bank of India on Thursday said it has set up an emergency funding window for its MSME and corporate customers impacted by coronavirus (Covid-19) outbreak. The bank is offering a maximum 10 per cent of the existing working capital limit to accounts that are standard as on February 1, 2020, a statement said.
The repayment period of these loans will be 36 months, including maximum moratorium of 12 months. The window is open till September 30, 2020.
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Public sector banks, including State Bank of India, Bank of Baroda and Indian Bank, have already rolled out similar lines of credit for their customers to meet any liquidity mismatches.
