The RBI has permited co-operative banks, which are Core Banking Solution-enabled, to issue ATM/ATM-cum-debit cards, in tie-up with a sponsor bank.
As a precursor to moving towards a cashless economy, it is necessary to inculcate electronic payment channels and the decision to allow co-operative banks to issue cards stems from this line of thought.
The RBI said it has been receiving representations from banks not having their own ATMs seeking permission for the same.
Earlier, Nabard has partnered the firm Net APP to build data and disaster recovery centers to equip cooperative banks with the latest core banking solution system. The latter will completely change the technological scene in the cooperative banking sector and significantly spike financial inclusion in the countryside, claimed Nabard sources.
In the case of UCBs besides NAFCUB’ efforts, leading cooperative lender Saraswat Bank has announced a tie-up with Reliance ADAG under which the Anil Ambani-led group will market a core banking solution developed by the bank’s infotech subsidiary.
