Category Archives: Co-Operative Banks

Safe ePayments on the Roll – NPCI & NABARD join hands to train RRBs for Electronic Payment Systems


            In India, the large number of Regional Rural Banks spread across the country play a vital role in economic system.

            Majority of the RRBs have migrated to CBS (Core Banking System). To leverage the full benefits of CBS, RRBs have to roll out Safe ePayment modules.

            RRB customers are willing to migrate from paper based transactions to electronic based transactions provided that they are assured the safety of their account balances.

            As a steps toward Safe ePayment Modules, NPCI (National Payments Corporation of India) and NABARD (National Agricultural Bank for Rural Development) are conducting two day workshops, with a focus on procedural guidelines for various electronic payment products available in our country.

            It might be noted that as a result of amalgamation, number of the RRBs has been reduced from 196 to 64 as on 31 March 2013. However the number of branches of RRBs increased to 17856 as on 31 March 2013 covering 635 districts throughout the country. The amalgamation exercise is expected to enhance the operational efficiencies of the RRBs.

            Out of the present 56 RRBs present in our country, 47 RRBs are part of the NPCIs NFS (National Financial Switch) network. A NFS member can access the NPCIs ATM network, as well as other electronic payment products viz CTS, NACH, IMPS. 


Reserve Bank of India introduces Information System (IS) Audit for Urban Cooperative Banks

RBI vide Notification No: RBI/2013-14/638 UBD.BPD.Cir.No. 71/12.09.000/2013-14 dt.June 11, 2014 has notified All ‘Primary (Urban) Co-operative Banks’, to introduce Information System (IS) Audit for Urban Cooperative Banks in India.

Over the years, UCB’s in India have moved away from paper based banking to electronic banking. The full suite of electronic banking viz ATMs’ Online Banking, Mobile Banking, Online Payments, Smart cards were being offered to UCB customers.

For a holistic delivery of services to customers and also to enable automaton of various reports, Reserve Bank of India vide Notification dt. September 11, 2013 had prescribed a calibrated timeline for implementation of CBS for UCBs based on their deposit size.

In view of the above and having regard to risks emanating from adoption of technology, there is a need to introduce IS Audit in UCBs.  Hence, RBI has advised UCBs as under:

01)UCBs may adopt an IS audit policy, if not already done, appropriate to its level of operations, complexity of business and level of computerization.

02)UCBs may also adopt appropriate systems and practices for conducting IS audit on annual basis covering all the critically important branches (in terms of nature and volume of business).

03)It is further advised that the IS audits be undertaken preferably prior to the statutory audit so that IS audit reports are available to the statutory auditors well in time for examination and for incorporating comments, if any, in the audit reports.

The above instructions to be implemented during the current accounting year i.e April 1, 2014 to March 31, 2015.

Reserve Bank rejects the Licence Application of Birbhum District Central Co-operative Bank Ltd. in West Bengal


As  Birbhum DCCB  failed to comply with relaxed licensing conditions set by the Reserve Bank of India by September 30, 2012, in consultation with NABARD, the Reserve Bank of India, on May 15, 2014 delivered the order rejecting licence application to the above mentioned bank for conducting banking business in India.

One of Birbhum’s famous landmarks is Santiniketan, where Shri Rabindranath Tagore spent his last days on earth.

Apart from Santiniketan, Bakreswar and Tarapith complete the cultural tourist circuit of Birbhum.

The latest attraction of Birbhum is B.A.B.L.I