Mumbai, Aug 14 (UNI) A working group of the Reserve Bank of India has set a roadmap for Regional Rural Banks to become Core Banking solution Compliant by 2011 and any new RRB branch opening after September 2009 should have CBS facility.
The report of the Working Group on Technology Upgradation of RRBS, chaired by RBI Chief General Manager G Srinivasan had indicated that the cost of technological upgradation of RRBs to enable them to become CBS compliant would be around Rs 730.78 crore. While the Sponsoring Bank of RRBs should meet 25 per cent of the cost, the balance would have to be borne by the RBI through the Institute for Development and Research in banking Technology.
The support could be in the form of interest free loans repayable in three years.
The RBI had also released on its website Working Group reports of two other groups including one on Defraying Costs of ICT Solutions for Regional Rural Banks (RRBs) and IT support for Urban Co-operative Banks.
The setting up of the Working Groups was announced in the Mid-Term Review of the Annual Policy for 2007-08.
The Working Group on Defraying Costs of ICT Solutions for Regional Rural Banks, Chaired by RBI Chief General Manager G Padmanabhan was constituted to work out modalities and recommend ways to provide financial assistance to RRBs for defraying a part of their initial cost in implementing IT based solutions. While making recommendations, the Group has taken into account the existing IT infrastructure and expertise with the RRBs, models available in the market and financial cost involved in implementing ICT solutions.
The Working Group on IT Support for Urban Cooperative Banks chaired by R Gandhi, Regional Director, New Delhi Office of the RBI was set up to examine various areas where IT support could be provided to UCBs by the Reserve Bank. The Report has, among other things, taken into account different levels of computerisation and inadequate awareness about the efficacy of computers in enhancing competitiveness prevalent in UCBs and has identified the minimum IT infrastructure that should exist in each UCB regardless of its size, location or profitability.
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