Kamesam Urges Banks To Pool Their Tech Resources

Banks should pool in their technology resources instead of each bank putting up its own IT network, Vepa Kamesam, deputy governor, Reserve Bank of India (RBI), said today.

"Banks can share their technology instead of each bank trying to re-invent the wheel. Banks can share the internet banking technology with each other. They could set up adequate firewalls so that security will not be a problem," Kamesam said at the launch of Corporation Bank's e-cheque facility.

The deputy governor also said that the electronic funds tranfers (EFT) are now available in 15 cities across the country with transfers available three times a day as against two before.

 

Further, to facilitate transfers, he added that the service branches of banks should be manned 24 hours a day and must be managed by well trained and well skilled personnel.

According to RBI's chief general manager (technical) R Gandhi, the EFT network has 65 banks under it with a combination of public sector, private sector and foreign banks. The monthly transactions through the EFT currently are at around Rs 60-75 crore with around 18-20,000 transactions per month.

Corporation Bank's chairman and managing director Cherian Varghese said: "The Corp e-cheque facility will be available initially in seven centres which will be extended to eight in the next phase. The facility will be available in 150 branches where Corporation Bank has introduced internet banking services."

The service combines the bank's internet banking product CorpNet with RBI's EFT, to effect transfer of funds within 48 hours to pre-approved beneficiaries.

The bank is planning to extend its internet banking services to all computerised branches which now stand at more than 400, across the country.