Solar power may help PSBs meet computerisation goal

Solar power may come to the rescue of some of the public sector banks which are finding it difficult to comply with the Central Vigilance Commission's (CVC) December 2004 deadline to achieve 100 per cent computerisation of branches.

Others are using wireless connectivity to overcome the infrastructure challenges in rural India. Indian banking industry has a 65,000-strong branch network bulk of which is located in rural and semi-urban pockets.

Bank of India is using solar power to computerise some of its branches in Bihar, Karnataka and parts of Maharashtra which have been hit by acute power shortages. The bank is using wireless connectivity in some branches in Madhya Pradesh, Andhra Pradesh and Maharashtra where there are no telephone lines.

Banks face the biggest challenges in the rural branches of Uttar Pradesh, Bihar and some parts of Orissa due to severe dearth of electricity and telephone lines.

"There are certain branches where there is no power for even 12 hours of the day. Even uninterrupted power supply (UPS) gadgets and generators will not be sustainable in such areas since the gadgets will be completely drained if used for such long hours. The December 2004 deadline sounds very difficult," said a PSU bank official.

Currently about 80-85 per cent of business volumes take the computerised route. The remaining has to be done by December 2004.

The CVC guideline mandates that all customer transactions should be recorded through computers and not manually as it is presently done in many rural branches of banks.

The CVC's rationale is that less frauds will be possible since there will be better reconciliation of accounts. Generation of MIS reports will also assure more accurate information.

The earlier CVC deadline had been that 75 per cent of business volumes should be computerised by 2001 which banks were able to comply with.

Currently many big banks such as State Bank of India, Punjab National Bank, Canara Bank, Union Bank of India, Oriental Bank of Commerce, Corporation Bank and State Bank of Patiala among others claim to have achieved 100 per cent computerisation.