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The Reserve Bank today asked Urban Co-operative Banks (UCBs) to implement core banking solutions (CBS) in all their branches by December 31, 2013.
"...very few UCBs have adopted CBS. Hence all UCBs are advised to implement CBS, in all their branches before December 31, 2013," RBI said in a notification.
It further said the failure to implement CBS within the time frame could result in denial of various facilities like expansion of branches or area of operation to UCBs.
The usage of Information Technology (IT) is critical for the survival and growth of banking institutions as IT usage not only helps banks to reduce their cost of operations, but also enables them to offer products and services at competitive rates to their customers, RBI said.
Also, IT is not just an enabler but a differentiator for banks in a competitive environment.
Further, for effective regulatory and supervisory compliance the banks need to use IT in their operations.
CBS helps to integrate range of services that can be offered by all the bank's branches from centralised data centers.
"The Government of India has also observed that UCBs without CBS do not integrate well with the banking system and hence there is the need to quickly adopt this model. CBS is a necessity in today's banking scenario," it added further.
UCBs are, therefore, advised in their own interest, as also in the interest of their customers, to adopt CBS as soon as possible, it said.
Source: Economictimes
"...very few UCBs have adopted CBS. Hence all UCBs are advised to implement CBS, in all their branches before December 31, 2013," RBI said in a notification.
It further said the failure to implement CBS within the time frame could result in denial of various facilities like expansion of branches or area of operation to UCBs.
The usage of Information Technology (IT) is critical for the survival and growth of banking institutions as IT usage not only helps banks to reduce their cost of operations, but also enables them to offer products and services at competitive rates to their customers, RBI said.
Also, IT is not just an enabler but a differentiator for banks in a competitive environment.
Further, for effective regulatory and supervisory compliance the banks need to use IT in their operations.
CBS helps to integrate range of services that can be offered by all the bank's branches from centralised data centers.
"The Government of India has also observed that UCBs without CBS do not integrate well with the banking system and hence there is the need to quickly adopt this model. CBS is a necessity in today's banking scenario," it added further.
UCBs are, therefore, advised in their own interest, as also in the interest of their customers, to adopt CBS as soon as possible, it said.
Source: Economictimes
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