Page 20 - Banking Finance July 2021

CO-OPERATIVE BANK NEWS

Co-Operative Bank

News

Infosys offers digital in their transformation journey. The finance bank (SFB), which in turn is
UCB landscape is being reshaped by expected to take over the scam-hit
banking SaaS offering for several forces in the new normal - Punjab & Maharashtra Co-operative

cooperative banks in India rapidly changing customer behavior, (PMC) Bank.
Infosys Finacle, part of EdgeVerve new agile competitors, and evolving Jyotindra Mehta, President, The
Systems, a wholly owned subsidiary of regulations. With our relentless focus National Federation of Urban
Infosys, announced its Digital Banking on innovation, we are pleased to Cooperative Banks and Credit Societies,
Software-as-a-Service (SaaS) offering power the next phase of growth for observed that the resolution of weak
designed as an accessible solution to UCBs in the country with our UCBs has brightened after the
help Indian Urban Cooperative Banks accessible, SaaS offerings, supported September 2020 amendment to the
(UCBs) to modernize their business and by our partners. " Banking Regulation (BR) Act, 1949, as
operations. Designed specifically for an UCB can be merged with any bank,
the UCB segment, the platform has Kapol Co-op Bank takes be it a SFB, universal bank or another

already seen adoption by three leading first step towards merger UCB. "Now a clear path to resolution
UCBs in India - Vidya Sahakari Bank, via amalgamation is available," Mehta
Urban Co-operative Bank, Bareilly and with Pune's Cosmos said. The Kapol Co-operative Bank was

Zoroastrian Co-operative Bank Action is rising in the urban placed under Directions by the RBI
The SaaS offering combines the cooperative banking (UCB) space, with with effect from the close of business
comprehensive functional spread of the Mumbai-based Kapol Co-operative on March 30, 2017. Once an UCBis
industry-leading Finacle solution suite, Bank taking its first step towards an placed under Directions, deposit
amalgamation with Pune-based withdrawal is capped.
with complementary solutions and
Cosmos Co-operative Bank.
capabilities from Finacle business This brings a lot of misery to the
partners, Saraswat Infotech Pvt Ltd The special general body meeting of depositors. An UCB under Directions
(SIPL) and Best of Breed Software the Kapol Co-operative Bank also cannot grant or renew any loans
Solutions (BBSSL), to help UCBs reduce unanimously voted on the resolution and advances, make any investment,
cost, drive operational efficiencies, and "to consider and approve merger of incur any liability, among others. While
deliver world-class customer the Bank with The Cosmos Co- stressed UCBs are placed under
experiences. operative Bank Ltd" on June 9, 2021. Directions by RBI to nurse them back
Venkatramana Gosavi, senior vice The aforementioned development to health, many stay under Directions
president and global head of sales, came about nine days before the for years.
Infosys Finacle, said: "For over two Reserve Bank of India (RBI) accorded As per Kapol Co-operative Bank's latest
decades, Finacle has been a strong its "in-principle" approval to Centrum balance sheet, as at March-end 2020,
partner to financial institutions in India Financial Services to set up a small it had deposits and advances

20 | 2021 | JULY | BANKING FINANCE