Door Step Banking – Opportunities and Challenges

What is Doorstep Banking ?

Doorstep Banking [DSB] is one of the key action points of the roadmap for banking reforms under the EASE (Enhanced Access & Service Excellence) Reforms brought out by the Department of Financial Services, Govt of India.  Initially it was meant to give service to senior citizens and person with disabilities.

Then in September 2020 Union Finance Minister Smt. Nirmala Sitharam launched the prestigious project of Door Step Banking for all PSBs at100 centers across the country.

The new company called PSB Alliance Pvt Ltd is set up to engage banking correspondents on behalf of the 12 public sector banks under a common standard operating precedure (SoP) to provide financial and non financial services directly to customer homes.

[PSB Alliance is an umbrella setup of all 12 Public Sector Banks, jointly offering important customer oriented services envisaged by Govt. of India under EASE of Banking reforms.]

PSB Alliance comprising 12 Public Sector Banks being anchored by UCO Bank, jointly, have engaged M/s Atyati Technologies Pvt. Ltd. & M/s Integra Microsystem P Ltd to provide “Door Step Banking through Universal Touch Points” facility to customer(s) of 12 PSBs Banks in 60 & 40 Specified Centres respectively) within the norms stipulated by PSB Alliance/ RBI.

What are the services available in DSB?

The services offered under DSB vary from bank to bank. As of now, 10 non-financial services and one financial service [cash withdrawal] is available in DSB services of most of the public sector banks.[www.psbdsb.in]. Few Public Sector Banks [Eg. SBI, from January 2021 onwards] offer Cash Deposit service too.

Non Financial Banking Services

And Submission of Digital Life Certificate facility is also available in Door Step Banking. Using Jeevan Pramaan App, DSB Agent will visit the doorstep of the customer and collect online life certificates.

How can a customer avail this service?

The ‘Universal Touch Points’ through which DSB services can be accessed are Mobile App, Web Portal [www.psbdsb.in ] and Call Centre.

• App: Door Step Banking [DSB] App available in App Store and Google Play Store.
• Web Portal : www.psbdsb.in
• Toll free numbers : 1800 121 37 21 / 1800 103 71 88

Web Application Customer URL

URL to download the Application

The customer’s bank account number must be linked to Aadhaar and mobile number. The customers need to raise a request over the touch points mentioned above and the bank will then assess the request and send their personnel to the registered communication address of the customer.

Once the agent deposits the instruments with the designated bank branch after pick up from customer , the DSB system will validate the service code of the customer and trigger a message “completed”, which will be notified to the customer through Mobile App.

In case of service/delivery request, Branch user will work on the service request & when service request is ready for an agent pick up then branch user will have to click on the “complete” button of web based portal, hand over instrument to DSB agent (based on service code shared) i.e. when the agents comes to the branch, he/she will share service code which has to be verified in DBS system of the bank.

Debit card can be used for cash withdrawal [within the minimum and maximum transaction limit prescribed by the bank] from Micro ATM provided by the agent.

Why DSB is important ?

DSB has gained lots of momentum recently because it really helped the banking needs of  customers in the covid pandemic times as there were restrictions in bank working time, difficulties in reaching the bank and there is fear of contracting the virus.

Advantages

1. For the customers DSB is convenient, hassle free and flexible. Helps to maintain the social distancing in the corona times. It is a boon for the not so tech-savvy customers, seniors and differently-abled persons.
2. Customers can also track their service request and register their complaints and grievnces through the universal touch points -Mobile App, Web Portal and Call Centre.
3. Registration through social media platforms- Recently, the two major public-sector banks in the country- SBI and PNB- have notified of these services and their registration options to customers via their Twitter handles.
4. Notifications will be sent to customers at each step of the service availed, helps to avoid frauds.
5. Customer can avail multiple services of different banks at the same time, if you are a customer of different public sector banks with the same primary phone number.
6. Competition among banks will help for improved customer service
7. In case of banks, these services would enhance their CASA portfolio, high level of Customer Retention, reducing work load in branches and lead to high level of customer satisfaction.
8. Dedicated and professional agents makes DSB, a safe and secure service when compared to the risk associated with digital banking.

To avoid frauds

• Don’t download any application from unauthorized sites/portals
• Don’t handover the instrument to agents without verifying the credentials/ID Proof
• Don’t except any instrument without any sealed envelope
• The instruments should be handed over to agents in sealed envelop with affixed stamp
• Don’t share the service code to any unknown person
• Ensure vendor is authorized to provide service at particular center

Challenges

1. DSB services are available in limited number of centres in the country.
2. Account holders with a valid registered mobile number within mentioned radius of their home branch only will be able to avail these services.
3. Customers with accounts that are operated jointly will not be able to avail these services. The service will also be unavailable for minor account and accounts of non-personal nature.
4. Charges applicable for service rentered

Banks charge anywhere between ₹60-200 (plus taxes), for every DBS request. For services to be offered through their alliance, PSBs would charge ₹75 (plus taxes) per financial/ non-financial service. Varies with type of service and banks.

5. Capped transaction amounts

HDFC Bank and SBI have capped the transactions at ₹25,000 and ₹20,000. Minimum and maximum withdrawal as in www. psbdsb.in is Rs. 1000 and Rs. 10000 respectively.

6. Long processing time

Currently, the responses are not instant, unlike the conventional internet or mobile or phone banking services and hence it may not be suitable for time-bound transactions.

7. Services available in working days only

Most banks offer these doorstep banking facilities on working days only and banks take anywhere between few hours to one or two working days to process a request.

8. Financial Transactions

Currently cash withdrawal is available and Cash Deposit and other services not available with most of the Public Sector Banks undertaking the DSB. SBI is offering Cash deposit services from January 2021 onwards.

9. Technical and other errors in App and website which leads to customer complaints. Also Server and network issues in banks leads to delay in processing and dissatisfied customers.
10. Fraud Risk

One of the reason why DSB is yet to gain some prominence among the general public is the concern of being subject to some fraudulent activities. It can be at technical level or at the agents level.

11. Lack of knowledge regarding the guidelines as furnished by the RBI.

Bank should educate customers about the features of door step banking and encourage them to use DSB for ensuring their safety in this Pandemic times.

Opportunities

• In future the DSB services will be extended to all parts of the country, there by extending service to millions of people and canvassing more customers.
• Banks can utilize the customer base created by this facility for cross and up selling the products. Also they can utilize the DSB in completing KYC, credit underwriting and other formalities with respect to banking services. We can expect that with the success of DSB, more facilities may add up for door step banking services by banks. Bank staff can complete the formalities in the sale of insurance, mutual fund and other third party products at the convenience of the customer at their place
• Addressing customer complaints in a better way: In future banks can reach the customers door step for providing effective solution of their complaints.
• Digitization: With the introduction of new technologies, softwares and Apps, there is a ample scope of digitization in many areas of banking.
• Banks will get more time to generate new business when more customers prefer DSB.
• Banking will be more experience oriented in future. Though service by human and technology would exist side by side, there will be more freedom and control for the customer to make the choice in time, place and the manner in which he wants to do banking. The branch would become a space for business conversation rather than transaction.

Thus, with the banks rendering service to customers at their doorstep and more and more people getting accustomed to this facility, banking in India is certainly going to transform in a better, desirable way.