IBA mulls special apprenticeship scheme for banking sector
In a significant move aimed at enhancing operational efficiency, banks in India are set to develop a Unified Recovery Interface (URI). This initiative follows the success of the Unified Payment Interface (UPI) and the upcoming Unified Lending Interface (ULI), with the goal of streamlining the recovery process for defaulted loans. The URI will be managed by PSB Alliance Ltd, a consortium of public sector banks.
M.V. Rao, Chairman of the Indian Banks’ Association (IBA), announced the new initiative at the “FIBAC 2024” event, organized by the IBA and the Federation of Indian Chambers of Commerce and Industry (FICCI). Rao explained that while UPI and ULI have transformed payments and lending, recovery remains a critical component that needs attention. The URI is designed to address this gap, aiming to improve efficiency in debt recovery and reduce collection costs for banks.
The URI will leverage the existing bank balance certificate process and integrate it with PSB Alliance’s infrastructure. This integration is expected to simplify the collection management process, making it more efficient and less challenging for banks.
A senior public sector banker revealed that PSB Alliance currently oversees the e-auction portal ebkray, which facilitates the sale of properties mortgaged for unpaid loans. The portal, supported by the Insolvency and Bankruptcy Board of India (IBBI) and the Debt Recovery Tribunal (DRT), is being enhanced to ensure that all operations are conducted through a streamlined application, potentially securing better prices for auctioned properties.
In addition to the URI, the IBA is working on a new apprenticeship program aimed at upskilling individuals within the banking sector. Sunil Mehta, Chief Executive of the IBA, mentioned that the program, in collaboration with the Ministry of Corporate Affairs, will focus on individuals aged 21-25 who need further training. The scheme is designed to enhance skills in areas such as marketing and recovery, targeting individuals who may not have high-level qualifications but possess the potential to contribute effectively to the banking industry.
These initiatives reflect the banking sector’s commitment to leveraging digital solutions and strategic programs to improve efficiency and address key challenges in loan recovery and workforce development.
