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Study of the CBS system of Cooperative Banks for conducting Inspection
1.0 Introduction:
Core Banking Solution stands for Centralized Online Real-time
Exchange (CORE) based banking solution. This helps the banks in maintaining a
single set of books of accounts in electronic form, located at Data Centre. This
electronic set of books of account are accessible to customers of the bank as well
as other banks, who transact business with the bank. Reserve Bank of India
(RBI) made CBS implementation mandatory for all banks including Regional
Rural Banks (RRBs) as well as Cooperative Banks under the STCCS. As per the
instructions, all the RRBs and almost all the State Cooperative Banks (StCBs) and
District Central Cooperative Banks (DCCBs) have adopted CBS. Mostly
unlicensed DCCBs numbering around 25 are yet to implement the CBS.
CBS has the following features:
a.
Centralized Database which can be accessed universally.
b.
Transactions take place at various locations round the clock through
alternate channels of banking besides regular branches, like ATMs,
Internet Banking, Mobile Banking, Point of Sale Machines, Tele Banking,
Debit Cards, Credit Cards, etc. Besides, the CBS data is replicated to
Disaster Recovery Systems (DRS), Back up Servers, Data Warehousing,
MIS Servers, Financial Inclusion Servers, etc., to be used for different
other purposes.
c.
The centralized database is updated on real time basis.
d.
Report Generation and MIS is taken care of in the back end, mostly
through MIS servers. MIS servers have a replica of the centralized
database, which is replicated at predefined intervals, e.g., daily, weekly,
etc., based on need.
e.
Predefined access to the Centralized database is provided to different
users.
With the implementation of CBS in the RRBs and Cooperative Banks, there are no
manual transactions in these banks, at present. All transactions, books of
accounts are maintained under CBS. This situation has necessitated access to the
bank records in the CBS by the Inspecting Officers (IOs) during the conduct of
statutory inspection of these banks. Hence, a need was felt for this approach
paper to enable the IOs to conduct inspection of supervised entities under CBS
environment.
The objective of this study is to provide an overview of the CBS environment
which is hitherto new to most of the Inspecting Officers (IOs) and also to provide
some useful information to help the IOs to approach the inspection under CBS in
a better manner. This report is not intended to deal with any of the inspection
methods or concepts, per se. This paper explains the difference in accessing the
data and information for conducting inspection under CBS environment.
2.0 Background
: NABARD, Punjab Regional Office has requested BIRD to
provide faculty support for a workshop on conducting Inspection under CBS
environment for the inspecting officers of NABARD. To conduct the workshop a
