Cooperative Banks under IT scanner

Cooperative Banks under IT scanner

The Income Tax (I-T) department is hauling up 62 branches of District Central Cooperative Banks (DCCBs) and State Cooperative Banks (SCBs) in the Mumbai Metropolitan Region for persisting with weak internal controls. “This is the potential next step for the government for the success of the demonisation initiative, to roll out customer due diligence, record keeping and reporting requirement in the district central cooperative banks. The department has asked banks to compulsorily instal Finacle core banking system developed by Infosys for providing banks with core banking, e-banking and treasury solutions across branches. Many smaller banks don’t have the facility to aggregate the CIN from different branches leading to a duplication of customer or subscriber base. The banks have been either not doing due diligence or don’t have the software to aggregate CIN data from different branches of the same bank.