CBS implementation: RRBs could get extension, says RBI

Mumbai, Aug 25: Reserve Bank Deputy Governor HR Khan today (Aug 25) said regional rural banks (RRBs) which are investing in core banking solutions (CBS) can get an extension if there is a need to provide it.

"If there is a need, we will look at that. If you tell from now that we will give extension, the momentum would be lost. So, if there is a need, we shall look at an extension (of the September deadline)," he told reporters on the sidelines of a Ficci-IBA event here.

An RBI committee had suggested that all RRBs move to the core banking platform by September 2011, a move that would help these banks undertake 90 percent of their business on this platform.

The committee noted that difference in computerisation level among different RRBs would have to be taken into account for any technology upgrade. The panel had suggested an application service provider model for the CBS platform. The sponsor banks were given the option to choose their own service provider for their RRBs.

On Wednesday during the same summit, National Bank for Agriculture

PTI