Never miss a great news story!
Get instant notifications from Economic Times
AllowNot now


You can switch off notifications anytime using browser settings.
11,921.50-96.9
Stock Analysis, IPO, Mutual Funds, Bonds & More

RBI overhauls cooperative banks' old email based reporting system after PMC debacle

RBI has asked all cooperative banks to replace the existing system of email-based reporting.

ET Bureau|
Updated: Oct 12, 2019, 06.25 AM IST
0Comments
Agencies
Untitled-17
Under the new system, all co-operative banks are required to submit their information in a single proforma online on RBI's CISBI portal
The Reserve Bank of India on Friday has overhauled the daily reporting system at cooperative banks after the collapse of Punjab and Maharashtra Bank following the uncovering of Rs.4000 crore fraud at the Mumbai based cooperative bank.

In a circular addressed to the chief executives of all cooperative banks, the Reserve Bank has asked all such lenders to replace the existing system of email-based reporting at the branches to a web-based central system. This will make use of RBI’s Central Information System for Banking Infrastructure (CISBI) which is an online portal that presently allots Basic Statistical Return (BSR) code to branches and offices of all banks.

“Consistent with the needs of branch licensing and financial inclusion policies as well as the need for requisite coverage of additional dimensions/features, a new reporting system, viz., Central Information System for Banking Infrastructure, has been web-deployed to replace the legacy MOF system,” the central bank notification said.

These banks have been given a period of a month to notify the regulators of the extent of compliance. Under the new system, all co-operative banks are required to submit their information in a single proforma online on CISBI portal, as compared with the earlier system of submitting separate documents with information about daily business activity at the bank through e-mail, according to the RBI notification.

On September 26th, the Reserve Bank had placed PMC under section 35A which froze all deposits held at the bank to a withdrawal limit of Rs.10000 for a period of six months. In the weeks subsequent, a charge sheet was filed against the top management of the bank and the promoters of HDIL, the shadow bank to which the bank had allegedly diverted Rs.4355 crore of funds. After a mass outcry by the depositors following the implosion of the fraud, the Reserve Bank subsequently increased the withdrawal limits to Rs.25000.

The police have so far arrested HDIL promoters Sarang and Rakesh Wadhawan, the bank’s former chairman Waryam Singh and former managing director Joy Thomas in connection with the case. They have also issued 17 look-out circulars, a dozen of which are against the erstwhile directors of the bank.

The central bank has already migrated all the past information of these lenders to CISBI, it said. They have also provided the nodal officers at these banks the login credentials using which they can access the new system.

“All co-operative banks should submit immediately and in any case not later than one week, the information relating to opening, closure, merger, shifting and conversion of bank branches / offices / NAIOs / CSPs online through the CISBI portal,” according to the central bank notification.

“After the initial submission of information on CISBI portal, a one-time confirmation stating that ‘Correct and updated Bank-level information has been submitted on CISB’ shall be sent by banks to the concerned Regional Office of Department of Co-operative Bank Supervision within one month of issuance of this circular.”

Also Read

PMC bank not linked with Punjab State Cooperative Bank & District Central Cooperative Banks

View: It's time to reform India's cooperative banks

RBI overhauls cooperative banks' old email based reporting system after PMC debacle

Punjab and Maharashtra Cooperative Bank administrator to move EoW against ex-management soon

The Co-op crisis: How 1,500-odd urban cooperative banks are being run and regulated

Comments
Add Your Comments
Commenting feature is disabled in your country/region.
Download The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.

Other useful Links


Follow us on


Download et app


Copyright © 2019 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service