In a notification issued recently, RBI says it will provide financial and technical help even to those urban cooperative banks that function without core banking solutions.
However, the UCBs which RBI has prevented from operations under the Banking Regulation Act will not be given any assistance, the notification said.
Institute for Development and Research in Banking Technology (IDRBT), an autonomous centre for research and development of banking technology formed by RBI and its subsidiary Indian Financial Technology and Allied Services (IFTAS), will provide all the technical assistance to UCBs.
As part of this programme, the banking regulator will provide Rs.4 lakh for each bank to IFTAS as set up cost. Thereafter, the recurring cost of Rs.15,000 per branch per month will be borne by the UCB, RBI said.
