Urban co-operative banks to adopt Core Banking Solutions

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 25^th 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.