CBS Implementation: Banks Can Get Extension, Says RBI


Mumbai: Reserve Bank Deputy Governor H R Khan today said regional rural banks (RRBs) that are investing in core banking solutions (CBS) can get an extension of the deadline imposed by the central bank for adoption of the new platform, if necessary. "If there is a need, we will look at that. If you tell from now that we will give extension, the momentum would be lost. So if there is a need, we shall look at an extension (of the September deadline)," he told reporters on the sidelines of a Ficci-IBA event here. An RBI committee had suggested that all RRBs move to the core banking platform by September, 2011, a move that would help these banks undertake 90 percent of their business on this platform. The committee noted that the vast difference in the level of computerization at different RRBs would have to be taken into account for any technology upgrade. The panel had suggested an application service provider model for the CBS platform, under which the sponsor banks were given the option to choose their own service provider for rolling out the system at their RRBs. Yesterday, during the same summit, National Bank for Agriculture & Rural Development (Nabard) Chairman Prakash Bakshi had said he expected RRBs to miss the September deadline for implementing the CBS platform by three months. Bakshi added that Nabard was providing 40 percent funding assistance from the Financial Inclusion Technology Fund for RRBs to adopt the CBS platform
Source: PTI