The Hindu Business Line : Banks close to full computerisation: RBI

Mumbai, Oct. 23 Computerisation of the banking sector is almost complete, according to the RBI’s latest report on Trend and Progress of Banking in India.

The report said that 27 public sector banks cumulatively spent Rs 17,897 crore on computerisation and development of communication networks between September 1999 and March 2009. The proportion of public sector bank (PSB) branches that achieved full computerisation has increased from 93.7 per cent in March-end 2008 to 95 per cent in March-end 2009.

As of March-end 2009 out of the 27 PSBs, 15 have put their branches on the core banking solution (CBS) platform. These banks are Andhra Bank, Corporation Bank, Indian Bank, Oriental Bank of Commerce, Punjab National Bank, Syndicate Bank, Union Bank of India, Vijaya Bank, State Bank of India and its six associate banks.

Banks that may need to step up the pace of putting their branches on CBS include Punjab and Sind Bank (1.1 per cent of the total branches on CBS), Allahabad Bank (9.7 per cent), Central Bank of India (30.8 per cent), and Canara Bank (38.6 per cent).

CBS enables banks to automate their core operations through integration of communication and information technology. This platform allows a bank’s customer to operate accounts from any branch of the bank or via Internet and mobile phone.

“The total number of branches of public sector banks which have implemented CBS increased from 35,464 as on March-end 2008 to 44,304 as on March-end 2009. The process of computerisation of the banking sector, which is regarded as the precursor to other technology initiatives, is almost on the completion stage,” the report said.

During 2008-09, banks (public sector, old private sector, new private sector, and foreign) collectively set up 3,479 branches (4,087 in 2007-08) and 8,862 ATMs (7,701 in 2007-08). As on March-end 2009, the number of branches and ATMs of scheduled commercial banks stood at 64,608 and 43,651 respectively.

In 2008-09, the number of ATMs as a percentage of branches increased. It was 40.2 per cent (35.4 per cent) for nationalised banks; 56.9 per cent (47.2 per cent) for old private sector banks; and 296.6 per cent (279.9 per cent) for new private sector banks. In the case of the State Bank Group and foreign banks, the number of ATMs as a percentage of branches declined to 29 per cent (55.8 per cent) and 357.3 per cent (377.4 per cent) respectively.

Of all the ATMs installed in the country as at March-end 2009, new private sector banks had the largest share in off-site ATMs (7,480), while nationalised banks had the largest share in on-site ATMs (10,233).

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