PNB mandates Digitization of Loan Accounts, Staff asked to Scan and Upload all New and Old Records

Punjab National Bank (PNB) has recently mandated the digitization of all loan documents, a step aimed at streamlining operations and moving towards a more digital banking ecosystem. While this initiative appears progressive, it is likely to add significant pressure on branch-level employees, particularly field functionaries who are already overburdened with multiple responsibilities amid ongoing staff shortages.

Officers at the branch level must now scan, verify, and upload physical loan documents—including even old and past documents—using the DMS (Omni app). This is an extra responsibility on top of their primary duties such as deposit mobilization, credit growth, compliance, customer service, monitoring, and recovery.

This task will seriously increase the workload of employees in branches. Punjab National Bank is the second largest public sector bank in India and has a huge credit portfolio. Uploading of all loan documents will be a very tedious task.

Many PNB branches are currently operated by a single Scale-I or Scale-II officer due to staff shortages. Initially, when various verticals were created within the bank, officers were moved from branches to specialized departments with the promise that branches would be relieved from work like recovery and large credit proposals. However, over time, many of these responsibilities have crept back into branch operations without increase in manpower.

For example: Punjab National Bank (PNB) had set up a dedicated loan sanctioning department called PLP. Initially, this department was responsible for visiting the borrower’s address and completing all loan-related formalities. However, over time, this responsibility has been shifted to the branch level. Now, the branch staff is required to carry out these visit-related tasks. Additionally, reports suggest that most of the loan sanctioning work is now being routed through the branches. Ideally, this process should have remained with the PLP in coordination with the borrower, which would have streamlined the work and reduced the burden on branch staff by completing the process in just two steps.

In fact, branch officers are now expected to handle tasks that range from property verification for housing loans, insurance premium payments under Pradhan Mantri Fasal Bima Yojana (PMFBY), renewal of loan accounts, to managing an expanded ceiling of recovery cases. Each of these duties not only increases the workload but also requires navigating complex compliance procedures and seeking multiple approvals from higher authorities—further delaying customer service and increasing operational strain.

One more recurring example is the PMFBY data entry process. Each year, officers must manually enter and update borrower details in state-specific government portals, which consumes a large number of man-hours. AIPNBOA has suggested a practical solution: creating state-wise templates within the Finacle system that allow for easier data input. This way, instead of re-entering entire records every year, only minor updates would be needed, saving time and effort.

Furthermore, the union has pointed out that most loan documents are already being created through the LENS portal. Therefore, a smarter, more futuristic solution would be to integrate Aadhaar-based OTP verification or digital signatures at the source itself. This would eliminate the need for physical documentation altogether and align more closely with the objectives of a truly paperless and digital banking system.

Recognizing the cumulative burden on branch staff, AIPNBOA has raised these concerns with the bank’s MD & CEO, urging the management to reconsider the implementation of the document digitization mandate and work towards a more balanced and efficient resolution that supports both technological advancement and employee well-being.