Daily Current Affairs : 4-January-2025

The Government of India recently launched the revamped BAANKNET portal, a digital platform aimed at simplifying the e-auction process for properties held by Public Sector Banks (PSBs). This initiative is part of the government’s efforts to address the problem of bad loans, promote transparency, and enhance the efficiency of property sales, which is crucial for the recovery of distressed assets.

What is BAANKNET?

BAANKNET is a centralized online platform specifically designed to facilitate the e-auction of properties owned by PSBs. Its main purpose is to provide a transparent and efficient way for banks to recover bad loans by selling off distressed properties. The portal aims to make the auction process smoother for both banks and potential investors.

Objectives of the Portal

The BAANKNET portal has been developed with several key objectives in mind:

  • Streamlining Recovery: It helps PSBs recover bad loans, thereby improving the financial health of these banks.
  • Unlocking Value: The platform maximizes the value of distressed assets, which can attract more investors and raise confidence in the banking system.
  • Ease of Access: The portal offers a one-stop destination for buyers and investors, allowing them to easily browse available properties and place bids.
Key Features of BAANKNET

BAANKNET is packed with features to make the e-auction process efficient, transparent, and user-friendly:

  • Consolidated Listings: The platform offers a comprehensive list of over 122,500 properties, including residential, commercial, and industrial properties, as well as agricultural land, vehicles, and machinery.
  • Technology-Driven: Built on a microservices architecture, BAANKNET integrates an automated payment gateway and KYC tools, ensuring a smooth and secure experience for all users.
  • End-to-End Auction Process: The portal streamlines the entire auction process—from pre-auction registration and bidding to post-auction activities like payment and property transfer.
  • Support System: BAANKNET provides a dedicated helpdesk and call center with callback options to assist users during the auction process.
  • Training: To ensure effective usage, PSB executives and Debt Recovery Tribunal (DRT) officers have been trained by the Department of Financial Services (DFS).
Important Points:
  • BAANKNET Portal: A centralized platform for the e-auction of properties held by Public Sector Banks (PSBs).
  • Launched by: Government of India, managed by the Department of Financial Services (DFS) under the Ministry of Finance.
  • Primary Objectives:
    • Aid PSBs in recovering bad loans.
    • Maximize the value of distressed assets.
    • Provide a one-stop platform for buyers and investors.
  • Key Features:
    • Over 122,500 properties listed, including residential, commercial, industrial, agricultural, and vehicles.
    • Built on microservices architecture with automated payment gateway and integrated KYC tools.
    • Streamlined pre-auction, auction, and post-auction processes.
    • Dedicated helpdesk and call center for support.
    • Trained PSB executives and Debt Recovery Tribunal (DRT) officers for effective platform usage.
Why In News

The Government of India launched the revamped ‘BAANKNET’ portal to streamline the e-auction process for properties held by public sector banks (PSBs), aiming to enhance transparency, efficiency, and accessibility for both banks and potential investors.

MCQs about BAANKNET Portal
  1. What is the primary purpose of the BAANKNET portal?
    A. To provide loans to Public Sector Banks (PSBs)
    B. To facilitate the e-auction of properties held by PSBs
    C. To manage bank accounts for PSB customers
    D. To offer financial advisory services to investors
    Correct Answer: B. To facilitate the e-auction of properties held by PSBs
    Explanation: The BAANKNET portal is primarily designed to streamline the e-auction process for properties held by Public Sector Banks, helping them recover bad loans and manage distressed assets.
  2. How many properties are currently listed on the BAANKNET portal?
    A. Over 50,000 properties
    B. Over 100,000 properties
    C. Over 122,500 properties
    D. Over 200,000 properties
    Correct Answer: C. Over 122,500 properties
    Explanation: The BAANKNET portal lists over 122,500 properties, including residential, commercial, industrial, agricultural land, vehicles, and machinery for e-auction.
  3. Which of the following is a feature of the BAANKNET portal?
    A. It provides loans directly to investors
    B. It has an automated payment gateway and KYC tools
    C. It only supports auctions for residential properties
    D. It offers financial support to distressed banks
    Correct Answer: B. It has an automated payment gateway and KYC tools
    Explanation: The BAANKNET portal is built on a microservices architecture and features an automated payment gateway and integrated KYC tools to ensure secure and efficient transactions during the e-auction process.
  4. Who has been trained to effectively use the BAANKNET portal?
    A. Only bank executives
    B. Only investors
    C. PSB executives and Debt Recovery Tribunal (DRT) officers
    D. General public
    Correct Answer: C. PSB executives and Debt Recovery Tribunal (DRT) officers
    Explanation: The Department of Financial Services (DFS) has provided training to PSB executives and DRT officers to ensure effective usage of the BAANKNET portal for the e-auction process.

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