PUNE: The National
Bank for Agriculture and Rural Development (Nabard) has asked all
district central cooperative (DCC) banks to get approvals from their
board of directors to introduce practices like the core banking system,
which are required to launch RuPay-enabled debit cards.
A Nabard official said, "Initially, all DCC banks will have to implement the core banking system, wherein information of all accounts will be available on the bank's intranet, so that basic transactions can be carried out at any branch. This technology is successfully used in all private and public sector banks in the country. Some urban cooperative banks have also implemented this technology."
Once core banking comes into effect, services such as debit cards, ATM withdrawals and online transactions can be made available to customers. DCC banks, which mostly have farmers as their account-holders, do not provide these services yet.
The Nabard had invited representatives of the 31 DCC banks in the state for a meeting in Pune. The banks were asked to shift to core banking and train their employees in the system. The banks will have to bear the expenses to introduce the new system and these will have to be approved by the respective boards of directors.
Nabard officials said core banking would bring all DCC bank accounts onto a common platform, which already has account details from all private and public sector and urban cooperative banks. This platform is supported by the National Payment Corporation of India with the RuPay technology, which offers flexibility and nationwide accessibility to account holders while withdrawing money or making payments using debit cards.
The RuPay-enabled debit cards promoted for farmers by Nabard will subsequently have national accessibility, making it possible for farmers to withdraw or pay money anywhere in the country. Currently, farmers are forced to carry cash with them. People from urban areas also face similar problems when they travel to remote areas.
Besides RuPay cards, more ATMs will also be set up in rural areas. The Union government has encouraged banks and private players to open ATMs in rural areas, Nabard officials said.
A Nabard official said, "Initially, all DCC banks will have to implement the core banking system, wherein information of all accounts will be available on the bank's intranet, so that basic transactions can be carried out at any branch. This technology is successfully used in all private and public sector banks in the country. Some urban cooperative banks have also implemented this technology."
Once core banking comes into effect, services such as debit cards, ATM withdrawals and online transactions can be made available to customers. DCC banks, which mostly have farmers as their account-holders, do not provide these services yet.
The Nabard had invited representatives of the 31 DCC banks in the state for a meeting in Pune. The banks were asked to shift to core banking and train their employees in the system. The banks will have to bear the expenses to introduce the new system and these will have to be approved by the respective boards of directors.
Nabard officials said core banking would bring all DCC bank accounts onto a common platform, which already has account details from all private and public sector and urban cooperative banks. This platform is supported by the National Payment Corporation of India with the RuPay technology, which offers flexibility and nationwide accessibility to account holders while withdrawing money or making payments using debit cards.
The RuPay-enabled debit cards promoted for farmers by Nabard will subsequently have national accessibility, making it possible for farmers to withdraw or pay money anywhere in the country. Currently, farmers are forced to carry cash with them. People from urban areas also face similar problems when they travel to remote areas.
Besides RuPay cards, more ATMs will also be set up in rural areas. The Union government has encouraged banks and private players to open ATMs in rural areas, Nabard officials said.
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