Coop urban banks to be computerised

The Reserve Bank of India (RBI) is planning to computerise the entire banking operations of co-operative banks in the state to ensure greater transparency and professionalism.

This and a few other measures aimed at improving the overall performance of urban banks as envisaged in the memorandum of understanding (MoU) signed by the state co-operative department with the RBI here on Monday would be initiated by the bank soon.

The MoU was signed by A V Sardesai, executive director of RBI, and G Sudhir, secretary of agriculture and co-operation, on behalf of their respective institutions.

Since the state government and the Reserve Bank of India are co-regulators of co-operative urban banks, the RBI has proposed an MoU with those state governments where co-operative banks are functioning to have a better co-ordination and for improving the performance of these banks.

Today's MoU also envisages that while taking decisions with regard to the co-operative urban banks, the RBI would consult the state registrar of co-operative societies and no action will be initiated by the RBI unilaterally.

It is now also obligatory on part of the registrar of co-operative societies to implement the decisions of RBI, according to a press release.

At present, there are over 127 co-operative urban banks functioning in the state, of which 49 banks are classified as grade 3 and 4, which require immediate attention and concentration.

It may be recalled that due to irregularities and closure of several co-operative urban banks in Andhra Pradesh, thousands of depositors have lost their savings.