Case Studies

NABARD helps Co-op banks with cloud-based CBS platform

NABARD, the apex development bank in
India, in collaboration with leading IT vendors has claimed one of
the biggest IT transformations in banking. By helping to bring
India’s cooperative banking sector onto a core banking solution
(CBS) platform, the two companies are giving the country’s rural
sector access to basic banking facilities such Any Branch Banking,
NEFT, RTGS and access to ATMs. A total of 201 state and district

NABARD, the apex development bank in
India, in collaboration with leading IT vendors has claimed one of
the biggest IT transformations in banking. By helping to bring
India’s cooperative banking sector onto a core banking solution
(CBS) platform, the two companies are giving the country’s rural
sector access to basic banking facilities such Any Branch Banking,
NEFT, RTGS and access to ATMs. A total of 201 state and district
level Central Cooperative Banks with 6914 branches from 16 states and
three union territories of the country have joined the ‘NABARD
initiated Project on CBS in Co-operatives.’ Currently, 200 banks
and 6913 branches are on the CBS platform.

NABARD Initiated Project on CBS in
Cooperatives

The Cooperative consists of a
three-tier structure with the Primary Agricultural Credit Societies
(PACS) in the villages, the Central Co-operative Banks at the
district level (DCCBs) and the State Cooperative Banks at the state
level (StCBs). The PACS cover most of the 6.50 Lakh Villages, which
are not covered by formal credit institutions, and they mostly cater
to the borrowing needs of the small and marginal farmer having land
holding of less than five acres.

Out of 201 Banks in the project, 199
were not operating on the CBS platform. These banks were operating
either in a manual environment or partially computerized standalone
environment leading to the use of multiple technology platforms for
their banking needs. This created a heterogeneous environment and
decreased efficiency. In order to drive faster transactions and
simplified banking systems and to comply with the regulatory
requirements stipulated by the Reserve Bank, NABARD found it
imperative to bring all the cooperatives onto a technology platform
in a way which would be cost efficient as well as ensure work
efficiency.

With CBS, the cooperative banks are now
in a position to offer the latest banking products to their
customers. For example, salaries of school teachers can now be
scheduled to be distributed at the same time thereby increasing
efficiency while reducing manual intervention. By adopting the CBS
platform, the co-operative banks have saved substantial amounts of
money and are now on par with commercial banks. Even the smaller
banks that could not afford to have their own core banking solutions
are now able to access the network.

 

Cloud Computing Technology

Cooperative banks leverage banking
software with a prefixed monthly cost eliminating the need to
purchase the banking software or make huge investments for setting up
datacenters. Cooperative banks are responsible for the infrastructure
facilities within their branches, head office and other service
outlets (PCs, printers, branch servers, UPS, LAN, switch, etc.) along
with regular maintenance. For the datacenters and disaster recovery
centers, NABARD partners with technology providers including NetApp
by deploying NetApp FAS storage systems as a private cloud.
Harnessing the power of its patented NetApp Data ONTAP® storage
operating system, the FAS storage systems simplify data management
across the CBS platform—from the local office to the datacenter to
the cloud. The systems integrate the latest flash, networking, and
processor technology innovations while offering advanced storage and
data management capabilities including deduplication, Snapshot™,
SnapMirror® and SnapManager®.

“I cannot stress enough about the
importance of the core banking platform to rural cooperative banks
and NABARD. Through CBS we have been able to reach out to India’s
rural sector and through the deployment of NetApp’s solution in the
project, being implemented by leading IT vendors; we have taken a
step closer in achieving our goal of financial inclusion in India. We
are expecting that implementation of CBS will also help in freeing
staff time, allowing them to focus on serving customers better and
winning new customers” said Subrata Gupta, Chief General Manager,
NABARD.

“It has been an honor to work with
one of the most premier banking institutions in India. We believe
that technology has the ability to drive economic growth in the
Indian rural sector, and we are delighted that through NABARD, NetApp
has been able to bring banking closer to many Indians and empower
them with information and technology,” said Anil Valluri, President
NetApp India & SAARC

 

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