New Delhi: National Bank for Agriculture and Rural Development (NABARD) Chairman Shaji K V on Tuesday said cooperative banks are expected to be digitised by March 2025 with a view to streamline operations and enhance the efficiency of these financial institutions.
The Reserve Bank of India (RBI) has mandated all cooperative banks to adopt the Core Banking Solution (CBS) marking a significant step towards modernisation.
"We are on behalf of central government undertaking digitisation of cooperatives. By March 2025 it will happen and by that time we will invite fintechs to work on that. We need a lot of technology solutions to work on these digitised database that we will have besides looking at transaction trails of digital platform," he said.
Speaking at a CII event here, he said NABARD is proposing to set up a common shared services entity across the country for all rural cooperatives.
"Both government and the RBI have agreed in principle for this entity. We jointly with the central government and cooperative banks will set up a separate company for digital adoption," he said.
As per the the Finance Ministry roadmap, 15 RRBs operating in various states will be merged to achieve operational efficiency and cost rationalisation.
Among states that will see consolidation of RRBs include Andhra Pradesh, which has the maximum of four RRBs, Uttar Pradesh and West Bengal (3 each), and Bihar, Gujarat, Jammu & Kashmir, Karnataka, Madhya Pradesh, Maharashtra, Odisha and Rajasthan (2 each).
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