Thursday, January 13, 2011

NABARD to improve condition of Co-op Banks

Due to lack of modern facilities the Co-operative Banks have been left far behind the commercial banks. In order to improve the present condition of the co-operative banks NABARD (National Bank for Agriculture & Rural Development) has planned to bring the co-operative banks under a common Core Banking Infrastructure.

Executive Director of NABARD Mr Prakash Bakshi said “Our effort aims at creating a level-playing field for cooperative banks in terms of modern banking solution. Except for some stray attempts , most of these banks do not have a CBS platform”.

The country has a network of 31 co-operative banks working at the state level and 370 co-operative banks working under them. These banks provides banking facilities primarily to the poorer section of the society. These banks had witnessed a drastic decrease in the number of customers over the years , primarily due to lack of modern facilities.

In order to bring a change to the present condition of these banks NABARD has decided to bring these banks under a common Core Banking Solution . NABARD will also set up a common data center and a disaster recovery system for the banks.

Mr Bakshi said NABARD has written to all its constituents to join hands in this endeavour . “Banks with existing CBS platform can also switch to our platform” . He expects this process to be functional by July this year.

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