The Cuttack Urban Cooperative Bank (CUCB), which serves the banking needs of over three lakh customers and 65,000 shareholders, is facing the threat of getting its banking licence withdrawn by the Reserve Bank of India (RBI). The threat is apparent as the CUCB is unable to go for Core Banking Solutions (CBS) within the stipulated period as prescribed by the RBI.
The RBI in March this year had asked all the UCBs, including the CUCB to adopt CBS by the end of December 2013 or face the denial of various facilities like expansion of branches or area of operation, including de-licensing.
Interestingly, the CUCB is not facing this dilemma for any of its own fault. “Rather we are facing this RBI de-licensing threat due to the whimsical and indifferent attitude of the State Government,” alleged a senior office-bearer of the bank.
“Keeping in view the RBI direction in March, we had taken measures to computerise all our 16 branches, two extensions counters and the bank’s headquarters to provide CBS in collaboration with the Bangalore-based C-Edge Technologies ltd. In fact, one of our branches was supposed to go online in the first week of December,” the official said, alleging that the Government is now pressuring us to have the CBS facility with another vendor.
According to sources, the Government has now asked the CUCB to take the help of experts in assessing the cost-benefit in awarding the CBS job to the vendor selected by the bank and the one chosen by the Government. The CUCB had signed a tripartite agreement with the C-Edge and the National Federation for Urban Cooperative Banks (NAFCUB) in March. In the meantime, the C-Edge has sent the V-sat equipments, which have been received by all the 19 units of the bank, including the extension counters.
“The data entry work by the vendor is nearing completion in all the units and necessary training to the employees have been completed,” informed a bank source, adding that the Nuapatna branch was expected to go online in the first week of December.