RBI scraps cooperative banks’ email based reporting system after PMC fiasco

The Reserve Bank of India on Friday revoked the old email-based daily reporting system at cooperative banks after the fraud of Rs 4000 crore encircling the Punjab and Maharashtra Bank came into notice.

RBI

In a notice addressing the chief executives of all cooperative banks, the apex bank has asked all such lenders to scrap the existing system of email-based reporting at the branches by all new web-based central system.

The reporting will now make use of RBI’s Central Information System for Banking Infrastructure (CISBI) which is an online portal that currently allots Basic Statistical Return (BSR) code to branches and offices of all banks.

“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, viz., Central Information System for Banking Infrastructure, has been web-deployed to replace the legacy MOF system,” the central bank notification said.

The banks are granted a month’s time to inform the regulators of the extent of compliance. Under the new system, all co-operative banks are mandated to submit their information in a single pro-forma online on CISBI portal dropping the earlier system of submitting separate documents with information about daily business activity at the bank via e-mail

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