New Delhi: In order to leverage the benefits of digital banking, banks are planning to set up a Unified Recovery Interface (URI) that aims to improve efficiency in loan recovery. The platform will reduce the cost of collections and help in getting good prices for properties of defaulters. The URI will be managed by the Public Sector Banks (PSB) Alliance Limited, a company jointly established by all the public sector banks in the country.
According to MV Rao, Chairman of the Indian Banks’ Association (IBA), the aspect of recovery is still out of the ambit of digital banking. The Unified Payments Interface (UPI) and the recently launched United Lending Interface (ULI) have already eased the process of payments and lending respectively. The proposed URI will ease the recovery process for banks by ensuring low costs and timely collections of payments. In addition, the e-auction portal of PSB, ‘ebkray’, will act as a platform for lenders to sell properties of defaulters and get a better price.
In addition to this, IBA is working on designing an apprenticeship program in the banking system for those who are not highly qualified in the field. The program will offer courses for individuals in the age bracket of 21-25 years to skill them in non-technical banking skills such as marketing and recovery.
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