Public sector banks (PSBs) in India anticipate a significant increase in the demand for doorstep banking (DSB) services. According to PSB Alliance (PSBA) data, DSB transactions are projected to jump fourfold, reaching 1.30 crore by FY28, compared to an estimated 30 lakh in FY24.
Over the next five years, the 12 PSBs, with their network of over 86,500 branches, are expected to collectively process 4.55 crore DSB transactions, including both financial and non-financial services.
PSBA, the umbrella organization for PSBs, focuses on providing convenient banking solutions at customers’ doorsteps. They launched DSB services in September 2020 and have partnered with two corporate business correspondents — Integra Micro Systems and BLS International Services — to offer these services. These partners utilize a network of over 6,800 feet-on-street (FOS) agents across the country, providing services on all days of the week, including bank holidays.
Door Step Banking Services
Currently, FOS agents provide various DSB services, including:
- Pick-up of cheques, drafts, and pay orders
- Collection of online life certificates using the Jeevan Pramaan app
- Delivery of account statements, non-personalized chequebooks, drafts, pay orders, term deposit receipts, prepaid instruments, and gift cards
- Cash withdrawal (minimum Rs. 1,000 and maximum Rs. 10,000) via microATM
IT Cost
The total IT cost for providing DSB services to the PSBs for five years is estimated at Rs 49.50 crore, to be shared among the participating banks based on their size and transaction volume.
The average FOS cost per transaction varies across regions and categories, ranging around Rs 45. PSBA proposes charging customers Rs. 5 per transaction on top of the service cost they pay the vendors. Additionally, PSBA will receive an annual subscription fee of Rs. 20 lakh from each bank for delivering DSB services. The projected revenue per transaction from customers is Rs. 75.
This initiative aligns with the Indian Banks’ Association’s recommendation to the government to declare all Saturdays as holidays under the Negotiable Instruments Act, further facilitating DSB services available on all days of the week.
Overall, the PSBA’s DSB initiative is expected to significantly enhance banking convenience and accessibility for customers across India.
