June 11, 2014
The Chief Executive Officer
All Primary (Urban) Co-operative Banks
Introduction of Information System(IS) Audit for Urban Cooperative Banks
Please refer to our circular UBD No.POT.PCB.30/09.96.00/2001-02 dated February 12, 2002 advising UCBs to introduce EDP audit system on perpetual basis. It is observed that since then some of the UCBs have adopted technology and have been offering electronic banking, tele banking, electronic clearing/funds transfer, electronic money, smart cards etc to its customers. With a view to integrating the range of services offered by bank branches, providing better customer services, generating MIS reports and various reports for regulators and Government of India, Reserve Bank of India has vide Circular UBD CO BPD PCB Cir No 14/09.18.300/2013-14 dated September 11, 2013 prescribed a calibrated timeline for implementation of CBS for UCBs based on their deposit size.
In view of the above and having regard to risks emanating from adoption of technology, there is a need to introduce IS Audit in UCBs. It is, therefore, advised that
The above instructions may be implemented during the current accounting year i.e April 1, 2014 to March 31, 2015.