Working Group on Cloud computing option for small size UCBs

Urban Co-operative Banks play an important role in the Indian Banking Industry. As they are typically small in size, they face a major challenge in adopting the latest technology. The Urban Banks have to adopt modern banking technology to continue to be relevant in today’s banking world.

The small Urban Co-operative Banks catchment area is 10-15kms around their branches.

To have a comprehensive view of the current state of technology adopted by Small Urban Banks, RBI set up a Working Group in July 2012.

The members were RBI senior officers, Software experts and Academic professors.

The following were the members of the Working Group on Cloud Computing for Small size Urban Co-operative Banks (UCBs).

01) Shri. A. K Hirve, Chief General Manager, Department of Information Technology,Reserve Bank of India, Mumbai

02)Prof. Siva Kumar,Head, Department of Mathematics, Indian Institute of Technology, Powai

03)Prof. H. Krishnamurthy, Chief Research Scientist, Supercomputer Education and Research Centre Indian Institute of Science, Bangalore

04)Shri A. Udgata,Chief General Manager-in-Charge, Urban Banks Department,Reserve Bank of India, Mumbai

05)Shri S. Ganesh Kumar,Chief General Manager, Department of Government & Bank Account,Reserve Bank of India, Mumbai

Representatives from two software companies were also on the working group.

01) Tata Consultancy Services: Represented by  Shri Satya Mishra, Shri Ujjwal Mathur and  Shri Jitendra Chivate

02)Infosys Limited: Represented by Shri Deepak N. Hoshing A.V.P

The brief of the Working Group was to

a)    Review the Profile of the sector.

b)   Analyze technological trends in Cloud Computing and use of cloud like solutions within UCBs.

Based on the analysis, the Working Group was to suggest an approach for Cloud computing option.

Brief Highlights of the Report:

Many Urban Cooperative banks provide IT support to other cooperative banks which included sharing of Data Centre and DR sites, Automated Teller Machines and Payment Gateways.

There were two major delivery models: – software solutions as outright sale or fees based ASP model.

Two leading software company were offering cloud like services which included core banking as well as many other solutions such as HR solutions, e-mail, storage, etc which the banks could choose. These services were mostly on private cloud like set up.

Cloud Computing is still in its nascent stage, and standards including technology management processes have not yet crystallized.  Hence, the major recommendation of the Working Group is to have exercise caution while adopting cloud computing solutions by the Urban Cooperative banks. The caution is till such time that all issues related to its standards and technology management processes are understood and resolved.

As some banks have already adopted innovative solutions, the Working Group has recommended that the issues identified in this report may be examined on the lines indicated in the report to ensure adequacy of risk mitigation measures and to address concern regarding data security and data privacy in the multi-tenancy environment.

On the closing note, the Working Group has identified the need for further study in the area of Cloud Governance, Cloud Audit, Cloud Management and Cloud Security Technology.

Additional Resources

Brief History of Urban Co-operative Banks in India.

Secure your Cloud

Re-disseminated by Prashant N. Banker by daytime, Blogger by night.

Do you want me write on any something specific, if so mail me @ nshantin(at)gmail com

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