Noting the benefits banks say they enjoy from seamless working on Core Banking Solutions (CBS), the Reserve Bank of India (RBI) has decided to adopt this in its operations.
It intends to integrate its system with banks and financial institutions on a CBS platform at a later date.
RBI will get in a consultant on how to go about it. The advisor would first study existing IT systems\solutions and help in its implementation across offices and departments. RBI will do the basic business process re-engineering (BPR) to tailor processes to fit into the CBS product to be used
A 14-phase program will include a review of the impact of CBS rollout on human resources. The Bank wishes to complete the phase to roll out within 36 months. Later RBI intends to extend the use of CBS platform/applications to its customers — banks, financial institutions, government departments, regulatory and supervisory wings.
RBI said the existing lot of applications have been serving the bank well. It will revamp the current systems with CBS, keeping in view the current state of advancement in banking technology (product and IT infrastructure) and future requirements.
The main objective is to achieve a cross-functional and seamless integration of banking activities, including the public debt office. It will pave way for a virtual banking department running on a single GL. It would enhance the system compatibility for multiple delivery channels.
The central banking business processes are different from the typical commercial banking processes. Nevertheless, the basic banking transactions are same. RBI had set out specific targets for IT upgradation in its financial sector technology vision 2008-10. The critical elements of the vision include completion of the implementation of CBS by banks. It also meant integrating the CBS with the common interbank payment systems, such as Real Time Gross Settlement System to facilitate ‘Straight Through Processing (STP) ’ modes.
Citi India’s ‘Suvidha’ salary account holders will need to maintain a monthly net relationship value of Rs 1 lakh if their salary is no longer ...