Parliamentary Committee Urges Public Sector Banks To Improve Speed And Efficiency

The Committee has suggested that public sector banks (PSUs) need to increase their efficiency in dealing with customers and be evolved to use the latest technology easily. 

A parliamentary committee headed by BJP MP Sushil Kumar Modi has suggested revamping the recruitment structure and process for public sector banks to meet today’s banking understanding and requirements. 

According to a PTI report, the Department-Related Parliamentary Standing Committee on Personal, Public Grievances, Law and Justice has suggested that public sector banks (PSUs) need to increase their efficiency in dealing with customers and be evolved to use the latest technology easily. 

In it’s latest report tabled on Tuesday in the Parliament, the committee has noted that the recruitment examination for the banks needs to be updated to reflect today’s need for speed and accuracy in prospective bankers.  

The committee said, “The philosophy of speed and accuracy required by bankers are changing from time to time. Around 10 years back, the workload and the nature of work perhaps did not need any speed or accuracy.  But today, speed and accuracy play a very important role owing to the hundreds of central and state schemes being executed by the bankers and the nature of pro-poor schemes launched by the government,” in it’s report. 

The committee emphasised the need for bankers today to be evolved in tune with the latest technology as PSUs cater to a large number of people through e-banking or online banking in addition to a huge number of Jan-Dhan Yojana account holders. Therefore, PSUs and their bankers should be equipped with the appropriate skill and knowledge to provide quick and appropriate banking services to the public, the report noted.  

The panel said in it’s report that recruitment examinations need to be evolved to judge the candidates on their aptitude. It referenced the Pilot Aptitude Battery Test (PABT), a test to examine a person’s aptitude and check if he/she will be suitable for the job, as one such exam and urged the Institute of Banking Personnel Selection (IBPS) to contemplate including such evaluations for candidates. 

“The Committee firmly believes that as on today, neither the speed and accuracy nor the service is improving at large. So, the Committee wants to know whether there is any such special examination, (like Pilot Aptitude Battery Test), say banker aptitude battery test, being conducted or contemplated by IBPS to test the speed and accuracy of the bankers being recruited,” the report stated.

The panel also raised questions on how syllabus and exam guidelines for the candidates are being updated to suit the changes and requirements in the banking sector. It further stated, “The Committee is of the view that the pattern of the examination needs to be changed from time to time taking into account the nature of work of the bankers so that accuracy and speed of the prospective candidates is properly evaluated. The Committee further recommends revamping the syllabus to meet the changing demands in the banking sector that have emerged due to wide use of technology in the field.”

The panel made another important recommendation on developing a mechanism to allow a refund of fees to students who are unable to appear for the exams after applying for them, citing that a major number of these students come from financially weak backgrounds. 

It recommended that a detailed analysis be done to understand the financial implications of reaching an examination center and making fees payment for a student. 

Elaborating on the suggestions in the report, the panel said, “The Committee notes that on average approximately 95 per cent of the candidates who apply are not able to get selected and left without a job. However, everyone is being charged and mostly they are unemployed. Hence, the Committee recommends that it would be fair and can be explored that the state or the central government bear part of that cost so that it does not burden the unemployed youth.”

Further, the committee urged the IBPS to work on increasing exam centers to allow more students to take the exam at one time. It said, “As on today, the maximum number is one lakh or one lakh twenty thousand. So, they need to work out on the modalities on how to execute this computer-based exam so that the number of candidates who appear in the exams can be increased at one go.”

This is the committee’s 131st report on the Review of Functioning of Recruitment Organisations of Government of India.