In a significant move to modernize India’s public sector banking ecosystem, the Finance Ministry unveiled BAANKNET, a next-generation e-auction portal, on January 3, 2025. Designed to accelerate the resolution of non-performing assets (NPAs) and enhance transparency, this platform replaces the earlier e-BKray system launched in February 2019. Minister of State for Finance, Pankaj Chaudhary, announced the initiative in a written reply to the Lok Sabha, emphasizing its role in streamlining asset disposals for Public Sector Undertaking (PSU) banks.
Key Features Driving Efficiency
BAANKNET integrates cutting-edge technology to address longstanding challenges in asset auctions:
Automated KYC Verification: Reduces delays and fraud risks by validating user identities digitally.
Bank-Verified Property Titles: Ensures authenticity, minimizing disputes over asset ownership.
Secure Payment Gateways: Facilitates seamless, fraud-resistant transactions.
Nationwide Reach: All 12 PSU banks and the Insolvency and Bankruptcy Board of India (IBBI) now use the platform to list and auction properties across India.
The portal aims to expedite NPA resolution—a critical goal for India’s banking sector, which has grappled with stressed assets worth billions. By digitizing auctions, BAANKNET reduces bureaucratic hurdles, attracts a wider pool of investors, and ensures real-time tracking for stakeholders.
Jan Samarth Portal: Bridging Gaps in Credit Access
In a parallel push for financial inclusivity, the government highlighted the Jan Samarth Portal, a unified digital gateway connecting citizens to 15 government-backed loan and subsidy schemes. The platform uses AI-driven assessments to accelerate loan approvals, eliminating physical paperwork and branch visits. Chaudhary noted that banks are increasingly adopting mobile apps and online systems to digitize end-to-end loan processing, furthering the "Digital India" agenda.
ATM Transaction Policies: Free Limits and SBI’s Unique Edge
The Ministry also clarified ATM usage rules:
Own Bank ATMs: 5 free monthly transactions (financial/non-financial).
Other Bank ATMs: 3 free in metros, 5 in non-metros.
Beyond Limits: ₹21 + taxes per transaction (bank-dependent).
Interestingly, State Bank of India (SBI) emerged as the sole PSU bank profiting from ATM operations in FY 2023–24, earning ₹331 crore. In contrast, other state-owned banks reported a collective loss of ₹925 crore, attributed to SBI’s vast ATM network and higher transaction volumes offsetting operational costs.
A Unified Push for Transparency and Digitization
BAANKNET and Jan Samarth reflect the government’s broader strategy to harness technology for governance efficiency. While BAANKNET targets recovery mechanisms for stressed assets, Jan Samarth democratizes credit access—a dual approach to strengthen India’s financial infrastructure. With PSU banks now adopting advanced platforms, the focus shifts to execution and scalability to ensure these tools deliver measurable outcomes for the economy.