Lucknow headquartered Uttar Pradesh State Cooperative Bank finally succeeded last Monday in getting RBI’s nod for starting Internet Banking facility. It had been more than a year, the co-op bank struggled to get permission for the same.
Uttar Pradesh State Cooperative Bank had applied for internet banking last year in the month of June but in the wake of several discrepancies found in the application, RBI had on several occasions asked the bank to rectify them. And now the bank management is taking a sigh of relief after the RBI released a letter to this effect.
It is to be noted that the bank had applied for internet banking in the tenure of Bhupendra Vishoi, then MD of the bank, who was on deputation and now has been sent to his parent organization in the wake of complaints related to his indulgence in illegal recruitment in the bank.
The letter was out from the RBI’s Lucknow office and was signed by S.K Srivastava, Assistant GM. It reads, “Please refer to your application dated June 22, 2020 seeking permission to provide Internet Banking with transactional facility to your customers forwarded to us through NABARD, Lucknow”.
“We have examined your request in consultation with NABARD and are pleased to grant your bank the permission to provide Internet Banking with Transactional Facility to your customers subject to compliance with all the terms and conditions contained in our Circular DCBR BPD (PCB/RCB) Cir.No.6/19.51.026/2015-16 dated November 05, 2015”, it further reads.
According to the letter, “You are advised to apprise us of the commencement of Internet Banking in the bank and further updation/modification in the services from time to time.”
It further said “You are further advised to report to us and NABARD every breach failure of security systems and procedures as indicated in Para 8 of aforementioned circular dated November 05, 2015. RBI reserves the right to commission a special audit/inspection in case of breach or failure of security systems and procedures”.
“You are advised to put in place all necessary controls and audit of all transactions, as per the internet policy with appropriate Board oversight”, the letter concludes.
Despite several efforts, Indian Cooperative failed to elicit the response of Varun Mishra, Assistant Registrar and newly appointed MD of the bank.