Amid PMC Bank Fraud Amounting To Rs 4000 Crore, RBI Changes Daily Reporting System For Cooperative Banks

The Reserve Bank of India on Friday (11 October) changed the daily reporting system at cooperative banks following the unearthing of over Rs 4,000 crore fraud at the Punjab and Maharashtra Cooperative (PMC) Bank.

In a circular addressed to chief executives of all cooperative banks, the RBI has asked them to replace the existing system of email-based reporting at the branches to a web-based central system. This will make use of RBI's Central Information System for Banking Infrastructure (CISBI) which is an online portal that presently allots Basic Statistical Return (BSR) code to branches and offices of all banks.

These instructions are being issued in super-cession of all the instructions issued on the subject so far, it said

"Consistent with the needs of branch licensing and financial inclusion policies as well as the need for requisite coverage of additional dimensions/features, a new reporting system -- Central Information System for Banking Infrastructure, has been web-deployed to replace the legacy MOF system," the central bank notification said.

These banks have been given a period of a month to notify the regulators of the extent of compliance. Under the new system, all cooperative banks are required to submit their information in a single proforma online on the CISBI portal, as compared with the earlier system of submitting separate documents with information about daily business activity at the bank through e-mail, according to the RBI notification.

"All cooperative banks should submit immediately and in any case not later than one week, the information relating to opening, closure, merger, shifting and conversion of bank branches/offices/Non Administratively Independent Offices (NAIOs)/Customer Service Points (CSPs) online through CISBI portal," the RBI said.

"After the initial submission of information on CISBI portal, a one-time confirmation stating that Correct and updated Bank-level information has been submitted on CISB' shall be sent by banks to the concerned Regional Office of Department of Co-operative Bank Supervision within one month of issuance of this circular."

On 26 September, the Reserve Bank had placed a withdrawal limit of Rs 10,000 per six months on all deposits held at the bank. This was subsequently increased the withdrawal limits to Rs 25,000 after opposition from the depositors.

The central bank has already migrated all the past information of these lenders to CISBI, it said. They have also provided the nodal officers at these banks the login credentials using which they can access the new system.

(This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.)