RBI con­cerned about IT sys­tems in small UCBs

Banking Frontiers - - News Cooperative -

The Re­serve Bank of In­dia is con­cerned about IT sys­tem ar­chi­tec­ture in 356 small ur­ban co­op­er­a­tive banks and the fail­ure of as many as 171 UCBs to fully im­ple­ment core bank­ing so­lu­tion. Deputy gov­er­nor N.S. Vish­wanathan said he is par­tic­u­larly wor­ried about smaller UCBs - 124 such banks with de­posit size of less than Rs 100 mil­lion and an­other 232 banks with de­posit size of be­tween Rs 100 mil­lion crore and Rs 250 mil­lion. He said the ar­gu­ment that adop­tion and im­ple­men­ta­tion of IT in­creases the cost of op­er­a­tions is not ac­cept­able be­cause IT en­abled op­er­a­tions are a ne­ces­sity to be rel­e­vant in the mar­ket place and at the same time, one needs to do what it takes to en­sure safety of de­pos­i­tors. He also said dig­i­tal bank­ing comes with risks as­so­ci­ated with cy­ber se­cu­rity con­cerns and banks need to have ro­bust IT sys­tems and sub­ject them to reg­u­lar IS au­dits.

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