Implementation of Core Banking Solutions by UCBs


A  number of UCBs in India are  not in favour of CBS as they viewed CBS as a heavy expense. However, the regulator Reserve Bank of India, vide Notification No RBI/2012-13/437 UBD.BPD.(PCB). Cir.No. 42/09.18.300/2012-13 dt.March 13, 2013, has advised all The Chief Executive Officers of All Primary (Urban) Co-operative Banks, to take steps for Implementation of Core Banking Solutions (CBS) in their respective banks.

One of the primary reasons of CBS is to enable the regulators to effectively supervise compliance regulations in UCBs’.

CBS also aids the top management in generating analytical reports and as well as in submission of various reports to regulators and Government.

Moreover, with ePayments slowly becoming the norm, standalone UCB’s do not integrate well with the Indian Banking System.  CBS is a must to run a Bank in India today.

Hence, RBI has advised UCBs’ in their own interest, as also in the interest of their customers, to adopt CBS as soon as possible. A large number of software are available today, including cloud based solutions, and UCBs may adopt the model that meets their bank’s requirement.

The deadline for UCBs to adopt CBS in December 31, 2013. RBI has also indicated that failure to implement CBS within the timeframe could result in denial of various facilities (expansion of branches or area of operation etc.) to UCBs.

A large number of CBS applications are available in the market, and UCB’s are free to choose the best suitable CBS Application for them.


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