Core Banking Solution for Co-operative Banks

Core Banking Solution for Co-operative Banks

Presented at

Karnataka Cooperative Summit 2016

09 February 2016

Agenda

Introduction

About CCBS

Objectives

CCBS Features

CCBS Interfaces

Basic Modules of CCBS

CAS Compliant PACS Modules

CCBS Implementation Status

Benefits of CCBS

Accolades & Recognition

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Introduction

Cooperative Banks in India are more than 110 years old institution, having better reach in rural areas

Cooperative Credit Structure prevalent in India is bifurcated into Short Term & Long Term Cooperative Credit Structure i.e. STCCS & LTCCSThe Short Term Cooperative Credit Structure (STCCS) is a 3 tier structure with State Cooperative Banks (SCBs), District Central Co-operative Banks (DCCBs) & Primary Agriculture Cooperative Society (PACS)The Long Term Cooperative Credit Structure (LTCCS) is a 2 tier structure with State Land Development Banks (SLDBs / SCARDB) & Primary Land Development Banks (PLDBs / PCARDB) & Financial Institutions/Corporation at National/State level (FIs)PACS are Hub of business activities (credit and non-credit) at village level. Can provide better financial inclusion at rural areas

About 1 lakh PACS at village level (average 1 PACS per 6 villages) with over 12 crores members

Many villages in India still do not have branches of any Nationalized bank

Co-operative Structure in India

Short Term Credit Structure

State Co-operative Banks (SCBs)(SCBs at State Level with over

1000 branches)

District Central Co-operative Banks (DCCBs)

(Approx. 372 DCCBs with over 13000 branches)

Primary Agriculture Cooperative Society (PACS)

(Approx. 1,00,000 PACS at village level)

Long Term Credit Structure

State Land Development Banks (SLDBs / SCARDB)

(Around 19 States with 750+ branches)

Primary Land Development Banks (PLDBs / PCARDB)

(Around 1050+ PLDBs)

Financial Institutions / Corporations at National / State

level (FIs)

About CCBS

An integrated web-based solution to provide core banking functionalities

The CCBS as a product is customized to cater to the requirement of the following: SCBs, DCCBs CAS compliant PACS solution SLDBs / SCARDB & PLDBs / PCARDB Financial Institutions / Corporations at National / State level (FIs) Treasury Banks

Implementation and hosting by NIC under Software As A Service Model (SaaS) with less technical requirement at bank level

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About CCBS

Integration with NEFT/RTGS (for inter Bank fund transfers), ATM transactions and other e-Governance initiatives e.g. Dhan Kharidi (Paddy Procurement at Chhattisgarh)

Supports Non Credit Operations like Trading of Consumer Goods / PDS for PACS application

Assist in financial inclusion by facilitating disbursal of payments under Govt. schemes (MNREGA, Mid-day meal, Old-age pension etc.) to beneficiaries at grassroots level

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CCBS Homepage (https://www.ccbs.nic.in)

https://www.ccbs.nic.in/

Objectives

To enable cooperatives to better serve the poorest of the poor in the country and further banking facility to the rural areas of India

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To leverage Information Technology to enhance effectiveness of Cooperative Banks/Societies/ Institutions, for delivery of payments & credits to rural citizens

To help the rural masses by providing financial assistance and facilitate easy monitoring of fund disbursement for updated position of fund

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To enable PACS at the village level to disburse all the social sector related Government funds (MNREGA, Mid-day meal, old-age pension etc.) to the accounts of targeted beneficiaries

CCBS Features

Provides SMS Alerts Faster generation of account

statements and statutory reports Fast reporting system (MIS - CAS) Standardization book keeping

(CAS) Lower Total Cost of Ownership

(TCO), Lesser operational cost (server, DC/DR)

Cost-effective, as it needs only a thin client

Maintains:• Various banking books and

ledgers• Trading of agricultural inputs• Trading of consumer items

Centrally Hosted solution for SCBs, DCCBs & PACS with integration at all levels

KYC Compliant customer management

Service Oriented Architecture (SOA) Adequately Parameterized Role-based Access Control System Maker-checker concept for

transaction Simple User Interface aiming ease of

use Supports Multiple Delivery Channels Unicode compliance for other

languages

Features of CCBS

Uniqueness of CCBS

Standardized approach to adopt common accounting system upto Primary Agriculture Co-operative Society (PACS) level

Inter-Branch (between two different locations) transactions, simple and single click interest calculation and bank closing activity

Inter-Bank transactions through NEFT / RTGS and ATM operation

Innovative features of CCBS: Service Oriented architecture to provide interoperability with other e-Governance

applications

Integration among all three layers of co-operative banking i.e. State, District & PACS (Village/Taluka) level for monitoring & reporting

Use of cloud computing infrastructure – hosted at National Data Centre, Shastri Park

Capability to handle Direct Benefit transfers through PACS level

CCBS Interfaces

CCBS

RBI & NABARD

State Co-operative

Banks

District Central

Co-operative Banks

Primary Agricultural Co-operative

SocietiesState & Primary

Agriculture Development

Bank

Financial Institutions /

Corps at National / State level

Treasury Banks

Government of India /

State Governments

Basic Modules of CCBS

Supplementary Day Book, Main Cash Book, GL & Trial Balance

Scroll, Vouchers & Advice

Balance Register Bill of Collection

Report Account Statement Personal Ledger NEFT / RTGS ATM PoS

Status of Transaction Account Statistics Defaulter’s List Overdue Deposits

Detail KYC Report NPA Report CTR/STR Report SLR Report BI tools Daily Transaction

Report Cash Reserve Ratio Overdraft details A/c Open & Close

Register

Back Office Modules MIS Modules

Savings & Deposits Loan & Advances Transfer & Clearing Interest Calculation Enquiry Kiosk Printing Passbook,

FDR, DD Scanning Photograph

& Signature Safe Deposit &

Locker Teller Management RD, STD, FD

Basic Modules


Credit Business Modules

Creation of Member & Share Management

Savings & Deposits• Saving Deposit• Recurring Deposit• Fixed Deposits• Reinvestment Deposits• Other Deposits

Interest Calculation Provision NPA Trading Account Book keeping as per the guideline of

CAS

Loan & Advances• ST (SAO) Loans / KCC Loans• Medium Term / Long Term

Agricultural Loans• MT Conversion Loans• MT /LT Re-scheduling• Loans against pledge of

agriculture produce• SHG Loans• Non-Farm Sector Loans• Loans against Deposit• Loans for Consumer Durables• Loans to Staff Members• Other Borrowing from

DCCB/SCB/State/Other institutions


Purchase and Sale of Fertilizers, Seeds and pesticides

PDS operations

Operations of Grocery/super store at PACS

Facility to transfer payments under various schemes directly to beneficiary accounts

Non Credit Business Modules


SCB

DCCB

PACS

Rajasthan government awarded the work of computerization for 750 PACS under Phase-I, out of which, 30 PACS are operational under 14 DCCBs

Trainings have been conducted for all the PACS managers In pipeline at Meghalaya and Chhattisgarh states Launched at 5 pilot PACS in Andhra Pradesh

All 49 branches including a head office of Meghalaya Cooperative Apex Bank, a SCB, are in core banking environment through CCBS with ATM & NEFT/RTGS facility

RuPay credit card facility has been started for KCC account holders and DBTL for LPG customers having account in bank is enabled

PoS facility has been started to be used for conducting transactions with any Merchant Bank

PMJJBY / PMSBY module of CCBS is under implementation

All 61 branches including a head office of DCCB Raipur, are operational in core banking environment

NEFT/RTGS, DBTL & ATM services are in operation PMJJBY / PMSBY module of CCBS is under implementation


PSCADB

FIs/Corporations

Implementation of customized CCBS at 89 Branches of Punjab State Cooperative Agricultural Development Bank is in progress

53 primary units are performing day to day operations. This bank is engaged in providing loan/advances under Long Term Cooperative Credit Structure (LTCCS)

Taken up with Haryana State Co-Operative Land Development Bank Limited and Gujarat State Co-Op Land Development Bank Limited

Implementation and customization of CCBS for head office and 3 branches of Delhi Financial Corporation is in progress

Initiated at National Scheduled Caste Finance and Development Corporation

Exploring State Bank of Sikkim for banking as well as treasury operations

Financial Inclusion Support

Direct Benefit Transfer (DBT) support to the rural population

Inclusion of the schemes like Pradhan Mantri Suraksha Bima Yojana

(PMSBY) Scheme, Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) Scheme and Pradhan Mantri Jan-Dhan Yojana (PMJDY)

Interface with Bank on Move (BoM) and Point of Sale (PoS)

Better monitoring of agriculture and non-agriculture loans

Support for cash less Dhan-Kharidi in Chhattisgarh

SMS alerts for every Transactions on registered mobile numbers

Benefits of CCBS

KYC compliant customer management to reduce duplication and fraud situations

Account operation from any of the branch of the bank. Account statement to customers Printed Passbook/ FD certificate NEFT/RTGS fund transfer facility SMS alert for all transactions enhancing comfort &security Transfer of payments like cash subsidy, MGNREGA payments etc

directly in beneficiary’s accounts Accurate and timely application of interest on deposits & loans Realization of cheque in less time CCBS enabled with ATM machines thereby facilitating the customers to

draw money 24*7 without any manual intervention

Ben

efits

for C

usto

mer

s

Benefits of CCBSInfrastructure and Customer Service: No need to set up and maintain 24*7 infrastructure. Data Security under secured domain of GOI Adaption of RBI / NABARD policy without any financial implication Reduced Customer Service Cycle time Faster and error free Audit of Bank / Branch

Online Monitoring for Bank/Branch: Facilitates monitoring of Agricultural / Non-agricultural loans and

advances including KCC / SHG / Medium Term Loan Facilitates monitoring of stocks (Fertilizers / Seeds / Pesticides) which

may in turn be a key input for deciding subsidy Facilitates Bank to measure financial health of their branches in terms

of Asset and Liabilities of branch and in turn Bank Accurate MIS and timely compliance of report & returns to the statutory

body of the respective bank

Ben

efits

for B

ank

Man

agem

ent

Accolades & Recognition

SecureIT 2015 Award by Elets Technomedia Pvt. Ltd.

Article in Livemint.com – 29.09.2014

Skoch 2014 - Merit of Excellence CSI-Nihilent e-Governance Award 2014Gujarat Co-operatives Summit 2015

Elets 3rd Annual Financial Inclusion & Payment Systems

Conference in 2015

Thank You...For further information, please contact :Shri IPS SethiSr. Technical Director

National Informatics Centre (NIC)

Department of Electronics & Information Technology (DeitY)

e-mail : [email protected]

mailto:[email protected]

Core Banking Solution for Co-operative Banks

Technology

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