New doorstep banking services to be initiated, new agenda by IBA says Rajkiran Rai

After the successful merger of Corporation Bank and Andhra Bank with Union Bank Of India (UBI) despite the lockdown, MD & CEO of UBI Rajkiran Rao who is also the newly appointed chairman of Indian Banks’ Association (IBA) now has the responsibility of representing the industry.

Rao has discussed his plans on initiating doorstep banking services which will be relevant to senior citizens in this time of COVID-19 outbreak.


Rajkiran said “IBA is coordinating the government’s initiative to provide doorstep banking as a chargeable, outsourced service. This is particularly relevant to senior citizens, who should not be out during COVID-19. We started with non-financial services and are planning to collect life certificates of pensioners and offer cash delivery and collection soon. We are also preparing the industry for the transition from Libor (London inter-bank offered rate) as a benchmark.”

When he was asked about how to define a bad bank he reverted “There is a need to change the perception that it is a ‘bad’ bank. I would rather call it a stressed asset management bank. Every country goes through economic cycles and such a concept will work, as there are many international investors for stressed assets.”

On the capital relief from the central bank, he said “The RBI has already extended the deadline (for raising capital requirements) to March 2021. They have also given relief on capital on home and other loans. We do not see the need to ask for any more relief.”

In June 2020, the government had extended Union Bank of India’s CEO Rajkiran Rai’s term by another two years until his retirement on May 31, 2022. Rajkiran Rai succeeded Rajnish Kumar as the IBA Chairman after Kumar recently retired as SBI Chief.