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National Bank for Agdculture and Rural Development

Dept. of Flnancial Inclusion & Banking Technology

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Head Ofiice : BKC, Bandra (E), Mumbai - 400 051

Tel. | +912226530024 . Fax : +91 22 2653 0150
E-mail : dfib@nabard.org . Website :www.nabard.org

. +-fi : +91 222653 O15O

: dfi bt@nabard.org . +iiqrag : www.nabard.org

+91 22 2653 0024

Ref NB.DFIBT/ 17 188-17 5 67 CBS-7 I /201 5-1 6

02 February 2016

CircularNo.

2-S

/DFIBT_

oL

/2016

The Managing Director/ Chief Executive Officer

State Cooperative Banks and Djstrict Central Cooperative Banks

All

Dear Sir.

support to licensed rurar cooperative Banks for imprementation of core

Banking

Solution.

cooperative Banks in the country have implemented core Banking

Solutions either under
Ownership Model or under Application Service provider Model.
CBS is the backbone on which all other delivery channels

will ride.

Hence stabilization

ofcBS

is necessary for the banks to provide Rupay Debit / Kisan cards

which can be used in ATM,
PoS, Micro ATM and at e-comm sites. It will also enable the uant<s'to
participate in online
remittance platform like RTGS and NEFT and other pratforms like
NACH, crS etc. To
.encourage.the banks to stabilize cBS, it has been decided to provide support under FIF for the
implementation of cBS. This is a one time measure and should not
be considered as a precedent

for further fi.urding, in future, in respect of proposals relating to similar

normar bankins
activities.

Project Details:

i.

CBS Models to be supported under FIF,

stcBs and DCCBs implementing cBS under ownership model

will be eligible for support for CBS under FIF.
The

ii.

and the ASp moder

Eligibility Criteria for availing support under FIF

a) The bank should have Banking License

b) The Bank should have a minimum GRAR of 7% as on 31 March 2015 and
maintain ihe same on an ongoing basis and reach

9%o as

at theend on 31 March

2017.

c) Bank should be in profit for at least 2 of the last three years.

d) Bank should have Board approved IT aad IS policy in place.
e) qank should be a member of Credit Information Companies.
rif'{rtdtTrt
Taklng Rural India >> Forward

f)

Bank should be providing SMS alerts to its customers in respect of financial

transactions.

g)

For DCCBs and StCBs in two tier structure, small and.marginal farmers, SC/ST,

other weaker sections, rural artisans should be at least 40yo

borrowing members. This clause

will not applicable to

of the total

StCBs of three tier

structure as they do not have any PACS affiliated to them.

iii.

h)

The bank should be on RTGSA{EFT.

i)

The banl should be fully on CBS and not on a parallel run.

Eligible components- The components that can be supponed under the pioject

are

the hardware and software specifically required for undertaking computerization. The

of items which can be supporled are servers, computers, scanncr,

printers, software, LAN, rack, switches, fumiture's specifically purchased for the
broad category

puryose of CBS, protection cage for VSAT, VSAT, UPS including batteries etc.

iv.

Extent of Support - Expenditure subject to a cap of Rs.2.00 lakh per branch or the
actual amount spent whichever is lower will be bome by NABARD under FIF. In case
the cost for the same exceeds Rs. 2.00 lakh, the difference

will iave to be borne by the

respective balks.

v.

Release of grant- The releases

will

be on reimbursement basis. The claims can be

submitted by the banks to the respective regional offices. The claims are required to be
supported with a certification from the bank for the expenditure incurred bv the bank

for CBS implementation.

vi.

Claim format- The banks are required to submit the claims to the resional offices

as

per the format enclosed.

As this would be a reimbursement against expenditure already incurred, banks may actively
consider creating a" Technology Adoption Fund" out ofthe receipt.

Yours faithfullv
fl) 0 1)-(Su6rata Gupta)

Chief General Manager

Encl: as above

(on Bank letter head)

(To be submitted to the concerned NABARD, Regional Office)

Annexure

Claim format support under FIF for implementation of Core. Banking

solution to rural Cooperative Banks
SN Particulars
Details
1
Name of the Bank
2.
Whether bank has a banking license
Yes/No:
3" Name of the CBS vendor
Percentage of CRAR as on 31 March zor5. (should not be
^
Iess than 7%)
Whether Bank in profit for at least two of the last three Yes/No:
5.
o.

vears
Whether bank has a Board approved IT and IS policy in Yes/No:
olace

7.

Whether bank

B.

Comoanies
Whether bank providing SMS alerts to its customers in Yes/No:
resoect of financial transactions.

9.

10.
11.

t2.
rJ,
74

15.

member

of Credit Information

Yes/No:

Percentage of borrowers from small and marginal

farmers, SC/ST, other weaker sections, rural artisans to
the total borrowing members. (should be at least 4o%)
(For DCCBs / StCBs in two tier structure)
Whether bank nrovides RTGS/NEFT facilitv
Yes/No:
Whether bank operating fully on CBS
Yes/No:
Whether bank has started issuing RuPay debit cards to its Yes/No:
customers.
Number of Branches
a) Total cost for implementation of CBS under orvnership
model
OR
b)ASP charges paid by the bank to the vendor ti11 31
January zo16.
Amount claimed
Rs. z lakh X no. ofbranches or
5n I4(aJ / [bJ wnrchever ls lower

We certify that the above mentioned amount was incurred for the implementation of core
bankine solution in ............ number of branches in the bank. The expenditure for

(robesubmittedtothecoircerned'o$ltrS#f"i3ffi$l
reimbursement involves the cost for hardware, software and connectivity components
required specifically for CBS implementation and not for any other purpose.

Wc undertake that we will maintain a minimum CRAR of z% and strive to

reach goA CRAR as on 3r March eor7.
The related expenditure bills and vouchers will 6e preserved by us for a period of three
years for verification by NABARD at any point of time. We request you to sanction and

reimburse an amount of Rs

.........................(Rupees

.....,.......................... )

towards support to licensed rural Cooperative Banks for implementation of Core Banking
Solution under FIF.

Place:

Seal and Signature of the

Date:

Airthorized Officer