Home / Industry / RBI to provide financial assistance to cooperative banks

Mumbai: Reserve Bank of India (RBI) on Wednesday said it will provide financial and technical assistance for urban cooperative banks (UCBs) which are yet to implement or have partially implemented core banking solution (CBS).

“UCBs which have not yet implemented CBS or partially implemented CBS will be eligible for financial assistance under the scheme," RBI said in a notification on its website.

The UCBs which RBI has prevented from operations under the Banking Regulation Act will not be eligible for the assistance, the notification said.

Institute for Development and Research in Banking Technology (IDRBT), an autonomous centre for research and development of banking technology formed by RBI and its subsidiary Indian Financial Technology and Allied Services (IFTAS), will provide all the technical assistance to UCBs.

As part of this programme, the banking regulator will provide 4 lakh for each bank to IFTAS as set up cost. Thereafter, the recurring cost of 15,000 per branch per month will be borne by the UCB, RBI said.

The banking regulator’s assistance programme was first discussed in its monetary policy announcement on 5 April.

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