- About Us
- About the Sector
- Regulatory Developments
As you all are aware, RBI formed a Working Group on 19 December 2007 under the chairmanship of Shri R. Gandhi, Regional Director, RBI and 8 other members. The Terms of Reference for the Working Group, inter-alia, was to structure a model/benchmark level of IT infrastructure for UCBs in general or identified sub-groups of UCBs. The said committee was of the view that CBS on Application Service Provider (ASP) model would be more suitable and affordable for the UCBs especially for the smaller ones.
In the light of the above, the National Federation of Urban Co-operative Banks and Credit Societies Ltd., (NAFCUB) took the initiative and Board of NAFCUB constituted an Expert Group under the Chairmanship of Dr. R. B. Barman, Executive Director (Retd.) RBI. Under the guidance of Expert Committee, NAFCUB floated tenders for selection of vendors for implementing Core Banking Solutions (CBS) on ASP Model in UCBs across the country. After having done the entire exercise including on-site and off-site demonstrations by the vendors, Six vendors were shortlisted to provide CBS on ASP to UCBs.
The urban banks were given the discretion to select any one of the vendors shortlisted by the Committee. For the purpose, the UCBs were required to enter into a tripartite agreement between the Bank, NAFCUB and the selected vendor. The per month per branch charges were fixed at Rs. 12,900/- (Rupees twelve thousand nine hundred only) and Head Office is also treated as a branch as it requires specific HO module.
NAFCUB acted as co-coordinator, facilitator and arbitrator for any assistance required by the banks. The roles and responsibilities between the bank, NAFCUB and the vendor were made amply clear in the Memorandum Of Understandings(MoU). The MoUs were valid for three years period from the date of signing.
After the completion of three years, BoD of NAFCUB reviewed the status and found that the Vendors services under the NAFCUB Scheme were not satisfactory. Vendors were more interested in signing agreements with banks directly outside the purview of NAFCUB’s tripartite agreements.
Therefore, the BoD in its meeting held on April 26, 2014 decided to discontinue with CBS Scheme and on the suggestion of Directors, agreed to Empanel the Vendors without binding them under agreement. Terms and conditions for the empanelment of vendors with NAFCUB were also kept very simple so that more vendors get empanelled. As of now, following FOUR vendors are empanelled with NAFCUB:
List of Empanelled Vendors with NAFCUB for providing
Core Banking Solutions (CBS) to UCBs
(As on October, 2015)