National Bank for Agriculture and Rural Development (NABARD) has signed a Memorandum of Agreement (MoA) with 10 Cooperative banks in Gujarat state to launch core-banking solution (CBS).
This agreement was signed with Cooperative Banks at the NABARD Regional Office and it covers
Gujarat State Cooperative Bank and 9 district central cooperative banks out of the 18 banks in the state, which include Ahmedabad, Baroda, Bharuch, Bhavnagar, Jamnagar, Kodinar TCBU, Rajkot, Sabarkantha and Surendranagar DCCB.
Surat DCCB has already migrated into a CBS platform with respect to all its branches. The agreement enables NABARD to technically assist these banks in provision of application software, maintenance of data centre, disaster recovery centre, related network connection and regular maintenance and support.
This would enable these institutions to become more customer friendly, transparent and above all improve operations and reduce costs. Under the project, NABARD would play the role of an advisor and facilitator and would ensure that the interests of the banks are protected throughout the implementation process.
NABARD would also assist in vendor selection, preparation of the contract and ensure that the rights of the banks are protected.
As this is a pan-India initiative of NABARD, regional offices in other states will also be signing such agreements.
Thus, by aggregating demand across the country for Cooperative Banks, NABARD would enable a better and effective deal for Cooperative Banks and it will also hasten the process of technology integration these institutions. The implementation process of CBS is expected to be completed within one year.
