Urban co-operative banks to adopt Core Banking Solutions
The next innovation in the Indian Banking Sector is the adoption of Core Banking Solutions by the Co-operative Banks. As a first step, Urban Co-operative Banks, have decided to adopt CBS and Shri Sharad Pawar, Union Agriculture Bank, would formally launch the same on 25th December, 2010, at “Coop Core 2010”
Coop Care 2010 is a two day exhibition cum seminar being held in Ahmedabad, Gujarat on 25th and 26th December.
The lead has been taken by National Federation of Urban Co-operative Banks & Credit Societies Ltd (NUCBCS) and Gujarat Urban Co-Operative Banks Federation (GUCBF), to enable the Co-operative Bank customers to experience the splendor of CBS.
As per Mr. K. Patil, President, NAFCUB. “There are total 1,674 Urban Co-Operative Banks in with 7,000 branches and 6 crore account holders. Of the total Urban Co-Operative Banks, only 8-9 has implemented CBS so far despite the fact that CBS concept has been introduced years ago,”.
NAFCUB has bargained with 3-4 Software Companies for a reasonable price, and left the final choice to the UCB’s.
This way, there is a win-win situation for both the Software companies as well the UCB’s.
The major benefits of UCB CBS drive will be the reduction of time-lag in Collection of Cheques.
Under Speed Clearing, the turnover time for Collection of cheques of Public Sector Banks/Private Sector Banks has come down significantly. Delays were experienced with relation to Cheques of UCB’s. However, with UCB’s too moving over to CBS, the time lag will lessen noticeably.