Latest News | Important for Cooperative Banks to Unleash CBS Services: Nabard Chairman

New Delhi, Aug 24 (PTI) Emphasising on the importance of adoption of technology, Nabard Chairman Govinda Rajulu Chintala on Monday said it is important for cooperative banks to unleash core banking solutions (CBS) services for their customers.

He said cooperatives in rural areas need to be revitalised at the earliest as collapse of the cooperative credit system will affect credit availability in rural areas.

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Chintala was delivering the 21st Vaikunth Bhai Mehta Memorial Lecture at a webinar organised by the National Cooperative Union of India (NCUI).

Technology will be the biggest single disruptor and connector, and this will make cooperative banks more competitive, transparent, accountable and performance-driven, said the Nabard chairman, as per an NCUI release.

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The release also quoted Chintala saying that Nabard has initiated to have 100 per cent CBS adoption by cooperative banks with 90 per cent branches on CBS, it said.

Pointing out that adoption of technology is vital, he said it is important for cooperative banks to unleash CBS services for their customers.

CBS is an information technology platform that provides facilities, including account access to customers irrespective of their location.

Nabard has disbursed Rs 211 crore from the Cooperative Development Fund to enable the cooperative banks to adopt the technology.

He also said cooperative banks can play a more proactive role than scheduled commercial banks in achieving financial inclusion.

A fully technology-enabled cooperative banking ecosystem and transition of half of India's PACS into multi-service societies would act as game changers as part of new-generation business strategy in reforming cooperative credit institutions in a big way in the coming years, he added.

Regarding transition of primary agricultural credit societies (PACSs), he said the recent decision by Nabard to develop 35,000 PACSs in a mission mode planning over three years is a step in this direction.

As PACSs establish consumer stores, sell cement to cattle feed, water plants, constructing godowns, Chintala said the commercial banks cannot come close to provide any of these services.

However, PACSs need increasing member participation and pro-active leadership, he added.

Earlier, NCUI President Chandra Pal Singh Yadav said cooperatives are vital for building up an Aatmanirbhar Bharat.

He said recently-created Rs 1-lakh crore Rural Infrastructure Development Fund provides many opportunities for PACSs to take benefits from the fund.

NCUI organises Vaikunth Bhai Mehta Memorial Lecture every year in memory of Late Vaikunth Bhai Mehta, a well-known leader of the cooperative movement.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)