In view of the recent Reserve Bank of India circulars to UCBs in the country, the Andhra Pradesh State Cooperative Urban Banks and Credit Societies Federation, Guntur recently organized a workshop on Cyber Security Framework, Audit, and recent RBI Circulars in Vijayawada to consider how UCBs should respond to the RBI guidelines, says a press release.
The organizers had invited eminent personalities like A S Murthy Garu Associate Director from CDAC and V Chandra Sekhar Garu auditor and Director of the Visakhapatnam Cooperative Bank.
They had been invited to explain to the UCBs how to go on with the RBI guidelines. Raghavendra Rao Director of the Andhra Pradesh State Cooperative Urban Banks and Credit Societies Federation said that still more workshops on various subjects will be held so as to make the UCBs well equipped with the necessary requirements as per the guidelines.
In one of the sessions, A S Murthy garu explained how the UCBs are classified into four levels based on their digital depth and interconnectedness to the payment systems landscape. How the framework would mandate implementation of progressively stronger security measures based on the nature, variety and scale of digital product offerings of banks.
He further dealt with Network Management and security, Secure configuration, Application Security Life Cycle, Change management, periodic testing, User access control/management, authentication framework for customers, anti-phishing, data leak prevention strategy, audit logs, incident response and management.
In the post lunch session, V.Chandrasekhar Garu had an interactive session with the participants on the Audit & Compliance, Classification of NPA Account on – ongoing basis, reporting of large exposures to Central repository of information on large credits, draft circular of limits on exposure to single and group borrowers/ parties and large exposures and revision in the target for priority sector lending.
M. Venkata Ratnam Garu Secretary and Abdul Jeelani Garu Vice President of the Andhra Pradesh State Cooperative Urban Banks and Credit Societies Federation thanked all the participants for the active participation in the workshop and making the workshop successful.
Earlier, the Reserve Bank of India released draft circular on limits on exposure to single and group borrowers/parties, large exposures and revision in priority sector lending targets for primary (urban) co-operative banks (UCBs) for feedback/ suggestions.
The circular stipulates that the prudential exposure limits for UCBs for a single borrower/party and a group of connected borrowers/parties shall be 10% and 25%, respectively, of their Tier I capital and that at least 50% of their loan portfolio shall comprise loans not more than ?25 lakh per borrower/party.
It further stipulates that the target for loans and advances to priority sector for UCBs shall stand increased to 75% of adjusted net bank credit or credit equivalent amount of off-balance sheet exposure, whichever is higher, by March 31, 2023. An appropriate glide path is proposed to be provided to UCBs for compliance with the aforesaid norms/limits/targets.
RBI said “Comments on the draft circular may be forwarded by January 20, 2020”.