Coop banks to adopt e-payment
IN KEEPING with the increasing competition from commercial banks, National Federation of State Cooperative Banks Ltd (NAFSCOB) has decided to upgrade functioning of State cooperative banks by adopting electronic payment system for sorting out operational problems.Updated: Mar 20, 2006 14:29 IST
IN KEEPING with the increasing competition from commercial banks, National Federation of State Cooperative Banks Ltd (NAFSCOB) has decided to upgrade functioning of State cooperative banks by adopting electronic payment system for sorting out operational problems.
With a view to facilitating operations of State and Central Cooperative Banks in general and development of cooperative credit in particular, the NAFSCOB was founded in 1964.
In its two-day brainstorming session in the State capital, the federation also tried to look into issues related to computerisation and network banking — a prerequisite to core banking solution (CBS) system.
Speaking to Hindustan Times, director, NAFSCOB, K Sudhakar said with decline of traditional methods for remittance of money, modern methods like electronic payment have gained grounds. “Being in the State list, SCBs and district central cooperative banks (DCCB) operate within a particular state only unlike other commercial banks.
“And it’s through All-India Mutual Arrangement Scheme (AIMAS) that inter-state remittances are dealt with, which we’re planning to upgrade,” he said.
Due to the restrictions in the by-laws, a SCB cannot open a branch outside the State. Similarly, a DCCB cannot open outside a district. Hence, the cooperative banks were earlier unable to offer remittance facilities all over the country as any commercial bank. It is the AIMAS that helped in the inter-state remittance.
“Some SCB’s like Maharashtra, West Bengal, Orissa and Kerala have gone for latest remittance facilities like Real Time Gross Settlement (RTGS), core banking and online networking – a big leap in cooperative banking sector,” mentioned Sudhakar.
He said the banks along with state governments have to take initiative to upgrade itself, as it is the need of the hour and one could not operate in a primitive manner.
First Published: Mar 20, 2006 14:29 IST