MANU/RMIC/0064/2016

Ministry : Reserve Bank of India

Department/Board : Department of Co operative Banking Regulation

Circular No. : DCBR.CO.PCB.Cir.No.14/09.18.300/2015-2016
                   RBI/2015-2016/368

Date : 13.04.2016

Chief Executive Officers
Primary (Urban) Cooperative Banks

Dear Sir/Madam

Scheme for providing Financial Assistance to Urban Cooperative Banks for Implementation of Core Banking Solution

As announced in the First Bi-monthly Monetary Policy Statement-2016-17 dated April 05, 2016 (copy enclosed), it has been decided to prescribe standards and benchmarks for CBS in UCBs and provide financial assistance and technology support through Institute for Development and Research in Banking Technology (IDRBT) to those UCBs who have partially implemented CBS or are yet to implement CBS.

2. As you are aware, as a part of the Memorandum of Understanding with the State Governments/Central Government on Urban Cooperative Banks (UCBs), Reserve Bank had agreed to provide IT support to the UCBs. With the objective of ensuring implementation of standardized CBS in UCBs, it has been decided to prescribe standards and benchmarks for CBS in UCBs and provide technical support to UCBs through Institute for Development and Research in Banking Technology (IDRBT).

3. Accordingly, a scheme for providing financial assistance to UCBs for implementation of CBS has been formulated in consultation with IDRBT and would be implemented by IDRBT/Indian Financial Technology and Allied Services (IFTAS) (a subsidiary of IDRBT). The initial set up cost of ` 4 lakh will be paid by Reserve Bank of India to IFTAS. Thereafter, the recurring cost of ` 15,000 per branch per month will be borne by the UCB. The details of the scheme for providing financial assistance to UCBs for implementation of CBS is given in the Annex.

4. UCBs not operating under directions u/s 35A of the BR Act, 1949 (AACS) and which have not implemented/partially implemented CBS will be eligible for financial assistance under the scheme. Such UCBs may approach IDRBT/IFTAS for availing benefits under the scheme.

Yours faith........