RBI changes daily system in cooperative banks
After the over Rs 4,000 crore fraud at the Punjab and Maharashtra Cooperative Bank, the Reserve Bank of India decided to change the daily reporting system at cooperative banks.
In a circular addressed to chief executives of all cooperative banks, the RBI has asked them to replace the existing system of email-based reporting at the branches to a web-based central system. This will make use of RBI's Central Information System for Banking Infrastructure (CISBI) which is an online portal that presently allots Basic Statistical Return (BSR) code to branches and offices of all banks, according to an IANS report.
These instructions are being issued in supersession of all the instructions issued on the subject so far, it said,
"Consistent with the needs of branch licensing and financial inclusion policies as well as the need for requisite coverage of additional dimensions/features, a new reporting system -- Central Information System for Banking Infrastructure, has been web-deployed to replace the legacy MOF system," the central bank notification said.
These banks have been given a period of a month to notify the regulators of the extent of compliance.
Under the new system, all cooperative banks are required to submit their information in a single proforma online on the CISBI portal, as compared with the earlier system of submitting separate documents with information about daily business activity at the bank through email, according to the RBI notification.
"All cooperative banks should submit immediately and in any case not later than one week, the information relating to opening, closure, merger, shifting and conversion of bank branches/offices/Non Administratively Independent Offices (NAIOs)/Customer Service Points (CSPs) online through CISBI portal," the RBI said.
"After the initial submission of information on CISBI portal, a one-time confirmation stating that Correct and updated Banklevel information has been submitted on CISB'' shall be sent by banks to the concerned Regional Office of Department of Cooperative Bank Supervision within one month of issuance of this circular." The RBI placed Mumbai-based Punjab and Maharashtra Cooperative Bank (PMC Bank) under directions for six months from the close of business of the bank on 23 September, 2019.