Under the Computerization of PACS project all the functional PACS are brought onto an ERP (Enterprise Resource Planning) based Common National Software, linking them with NABARD through State Cooperative Banks (StCBs) and District Central Cooperative Banks (DCCBs). This common ERP software is provided to all the PACS in the project, across the country, to capture data on all functionalities of PACS, both credit and non-credit. The ERP- based common national software enhances the efficiency of PACS operations through a Common Accounting System (CAS) and Management Information System (MIS). Additionally, it strengthens governance and transparency, resulting in faster loan disbursal, reduced transaction costs, minimized payment imbalances, and seamless accounting with DCCBs and StCBs.

To enhance data security, cyber security, and inter-operability among cooperative banking systems, An umbrella organization named National Urban Co-operative Finance and Development Corporation (NUCFDC) for urban co-operative banks is established with the objective to accelerate the digitization of cooperative banks by leveraging collective strengths, fostering collaboration, promoting innovation, and ensuring that member banks are well-prepared to navigate the complexities of the digital era effectively.

Further, to provide technological services to Rural Cooperative Banks (RCBs) and for their strengthening, RBI has given in-principal approval to NABARD for setting up of Sahakar Sarathi (Shared Service Entity).

Additionally, NABARD (National Bank for Agriculture and Rural Development) has implemented a dedicated Cyber Security, IT Examination & Evaluation (CSITE) Unit since 2020(with own and external specialists totaling 10 personnels) to monitor Cyber Security robustness and compliance within RCBs and guiding them in strengthening their cyber-security posture, issued a Comprehensive Cyber Security Framework for Rural Cooperative Banks (RCBs) on 06..02.2020, developed a Vulnerability Index on Cyber Security (VICS) which is used by the banks to self-assess the implementation of prescribed controls and continuously improve its cyber security posture, and conducts inspections, audits, advisories to conduct Cyber Security Audit through Computer Emergency Response Team-India(CERT-IN), and various training programmes. CSITE celebrates Cybersecurity Awareness Month in October, since last 3 years, focused on cybersecurity aspects by Virtual Workshops, Training Materials, Digital contents etc.

To address the growing concerns around cybersecurity in the cooperative banking sector, a Comprehensive Cyber Insurance policy has been strategically introduced for Rural Cooperative Banks (RCBs) and Regional Rural Banks (RRBs). This initiative reflects a proactive approach to safeguarding the digital infrastructure and sensitive financial data of RCBs, which are increasingly vulnerable to cyber threats in today’s interconnected banking environment. NABARD facilitated the first-ever cyber insurance for 193 RCBs and RRBs in FY 2024-25.As on date, 231 RCBs, 21 RRBs and 2 UCBs are covered under the NABARD facilitated Cyber Insurance programme.

This was stated by the Minister of Cooperation, Shri Amit Shah in a written reply to a question in the Rajya Sabha.

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RK/VV/RR/PR/PS

(Release ID: 2158334)