EASE 8.0 Programme: 7 Public Sector Banks Introduce 32 Generative AI Tools Across Operations

Under the EASE 8.0 Programme, 7 public sector banks have rolled out 32 generative AI applications, as per The Economic Times report.  

The applications are being used across operations and credit processes. This is part of the ongoing reform cycle aimed at upgrading technology, governance, and risk controls at state-run lenders. 

10 PSBs have also drawn up formal AI policies. The current phase of reforms encourages the use of agentic AI systems that can automate multi-step workflows. At least 7 lenders have already deployed one or more of these tools. 

Use in Credit Appraisal 

Bank executives said the systems are being used during credit appraisal to review business details, financial statements, credit history, and repayment records. This is to reduce manual effort and keep assessments more consistent across portfolios. 

Separately, about 9 PSBs have introduced digital systems for operational risk management. Most state-run banks now follow standard procedures for Expected Credit Loss calculations, using data from at least one full economic cycle along with macroeconomic projections. 

Focus Areas Under EASE 8.0 

The EASE reforms, led by the Department of Financial Services, are intended to modernise public sector banks through changes in governance, technology and risk frameworks. Under EASE 8.0, lenders are working on digital underwriting tools, closer credit monitoring, and shorter processing times. 

As per the report, the changes come as banks look to preserve recent improvements in asset quality while preparing for possible global uncertainty. Technology-led monitoring is also being used to identify early signs of stress in loan portfolios. 

Next Phase of Reforms 

The next stage of the programme, called EASErise for 2025-26, is to focus on stronger risk-management systems and the ability of banks to absorb economic shocks. The future phases will continue to centre on digital adoption and governance measures. 

Read More: PSBs Increase Share in Credit Card Spending to 22.2% in December 2025! 

Conclusion  

The reforms will  focus on digital adoption, tighter risk systems and faster credit processes. The next phase is to build on these measures under EASErise for 2025-26. 

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