Urban cooperative banks had always been poor cousins of Public sector banks and Private sector banks on account of Core Banking Solution. The traditional way of carrying business is somehow not going with the mood of the times. Core Banking Solution offers to connect banks to the server so that a customer can operate his account from anywhere in the world.
In a major move which will at once make urban cooperative banks modern and high tech ,National Federation of Urban Co-operative Banks & Credit Societies Ltd (NAFCUB) has bargained a reasonably cheap software for the these banks from the leading vendors.
In an exercise which was going on for quite some time NAFCUB short listed 3-4 top software companies such as Tata Consultancy , Mindmill Software etc. It bargained hard with the companies and brought the rate at Rs 12,900 which is easily affordable by the UCBs. When they were dealing individually with software giants, the rate was quite high to the tune of approx Rs 35,000.
After shortlisting 3-4 soft ware companies, NAFCUB has asked the urban cooperative banks to choose any according to their preference. It has indeed fulfilled the role of true federation in the sense that it bargained well and protected the rights of UCBs.
“CBS for Urban Co-Operative Banks will be launched during ‘COOP CORE- 2010’ (a two day exhibition cum seminar being held in Ahmedabad on 25th and 26th December) in which union minister for Agriculture Sharad Pawar, the deputy governor of the Reserve Bank of India will remain present,” said H. K. Patil, president, NAFCUB.
NAFCUB is the apex level promotional body of urban cooperative banks and credit societies in the country. Its activities include liaison and interaction with the Reserve Bank , the Central and State Governments, its member banks and credit societies.
Patil said CBS has not been adopted yet by most of the Co-operative banks in due to large investment required.
“There are total 1,674 Urban Co-Operative Banks in with 7,000 branches and 6 crore account holders. Of the total Urban Co-Operative Banks, only 8-9 has implemented CBS so far despite the fact that CBS concept has been introduced years ago,” Patil said.
However some banks including leading Urban Cooperative Bank Saraswat Bank is not part of the exercise as it has already tied up with another software company and is selling the same to other UCBs who ever may be interested. But, according to sources its rate is quite high compared to latest deal struck by NAFCUB.