EASE 9.0 charts FY27 roadmap to build globally competitive PSU banks

The government has unveiled the next phase of reforms for public sector banks (PSBs) under the EASE 9.0 agenda for FY27, laying out a comprehensive blueprint to transform them into globally competitive institutions aligned with the vision of Viksit Bharat @2047.

The reform programme, which has evolved annually since the launch of EASE 1.0 in FY19, is structured around four core themes — Risk & Resilience, Innovation, Socio-economic Impact and Excellence. The latest edition, released by the Indian Banks' Association, seeks to deepen technology integration, strengthen risk management frameworks, expand inclusive banking and enhance operational efficiency across PSBs.

As per the report, under the Risk & Resilience pillar, banks will scale analytics-led credit underwriting by leveraging artificial intelligence (AI), generative AI (GenAI) and machine learning to automate credit appraisal note generation, improve cash-flow based lending and enable dynamic risk-based pricing. The report noted that portfolio-wide risk segmentation frameworks will be institutionalised by integrating traditional and alternative data sources to identify emerging stress at both segment and customer levels at an early stage.

The report further stated that fraud risk management and mule account detection will be strengthened through AI/ML-powered real-time scoring systems and enhanced monitoring of transactions and digital behaviour. Enterprise-wide operational risk management will be implemented through integrated digital platforms equipped with defined thresholds, automated triggers and structured escalation mechanisms, supported by dashboard-based oversight.

According to the report, technology modernisation remains a central focus. PSBs will undertake structured upgrades of legacy systems, transition towards microservices-based, API-first and cloud-ready architectures, and assess the feasibility of adopting active-active data centre models. AI-led DevSecOps practices and AI-powered security operations centres will be introduced to improve cyber resilience and accelerate secure software delivery. Data governance initiatives will include strengthening single sources of truth, integrating unstructured data from customer channels and institutionalising enterprise-wide consent management and privacy frameworks to support responsible data usage.

On the innovation front, the report highlighted that EASE 9.0 proposes piloting and scaling GenAI and agentic AI use cases across credit processing, frontline sales, collections, customer servicing and fraud management. Banks will establish core AI stacks — including LLM licensing and GPU strategies — and embed model risk governance frameworks to ensure reliability, compliance and responsible AI adoption.

As per the report, digital-led customer acquisition will be expanded through omni-channel journeys and integrated marketing technology capabilities. Mobile banking platforms will be modernised with enhanced user interfaces and dynamic personalisation features tailored to individual customer behaviour. Call centres will be reimagined using GenAI-powered systems capable of handling inbound and outbound interactions with contextual insights to improve conversion and service efficiency. PSBs will also explore low-cost Lite branch models and define phased roadmaps for setting up Global Capability Centers (GCCs).

The report added that business process re-engineering will focus on digitised administrative workflows, end-to-end loan lifecycle management suites integrated with third-party service providers, and AI-enabled dashboards for top management to query internal MIS as well as external data sources for actionable insights. A standardised digital journey for DEAF claim processing will also be implemented.

Under the Socio-economic Impact theme, the report stated that banks will scale inclusive banking initiatives, including enhanced accessibility for Divyangjan across branches, ATMs, call centres and digital platforms. Multilingual access across channels will be expanded, while community-led financial inclusion through BC and Bank Mitra networks will be strengthened.

The report further noted that PSBs will increase lending to sunrise sectors such as infrastructure, green energy, semiconductors and defence. Tailored propositions will be developed for start-ups, gig workers, women-led MSMEs, youth and senior citizens, with a focus on last-mile credit delivery and digital banking penetration in remote areas.

Under the Excellence pillar, as per the report, banks will drive advances and deposit growth transformation through dedicated outbound sales capacity, data-driven customer tiering and centralised retention capabilities. Select branches will be upgraded into premium relationship hubs in high-potential districts.

The report also emphasised cost optimisation and income growth through board-approved cost-to-income roadmaps, stronger trade finance and forex capabilities, and the establishment of Treasury Command Centres for granular liquidity and risk monitoring. Technology investments will be tracked through value-realisation frameworks.

Customer Experience (CX) will be institutionalised through enterprise-wide CX Centres of Excellence with defined metrics such as CSAT, NPS and first-time resolution rates. The report added that talent and leadership initiatives will include scaling digital HR practices, strengthening leadership pipelines and formalising the role of Chief Ethics Officer. Investor relations and capital management frameworks will also be enhanced to strengthen global competitiveness.

With EASE 9.0, as outlined in the report, the government aims to consolidate earlier reform gains and position PSBs as technology-driven, resilient and customer-centric institutions capable of supporting India’s long-term economic growth trajectory.