The Hindu Business Line : Enhance technology in co-op banks: Reddy

HYDERABAD: The RBI Governor, Dr Y V Reddy on Saturday stressed the need for enhancing use of technology in cooperative banking sector to bring them to the level of commercial banks.

Speaking on the occasion of presenting IDRBT Banking Technology Awards for the year 2005-06 here, Dr Reddy said several cooperative banks are extending services and some of them also have relatively large-scale operations.

Perhaps, it is essential that the use of technology in the cooperative banking sector too is enhanced, to bring them closer to the level of commercial banks, he said.

In his keynote address on "Financial Inclusion," Dr Reddy said, "We have been highlighting the need for financial inclusion, which involves the provision of banking services to the vast multitude population that has so far been excluded from them".

As far as increasing its scope and coverage is concerned, some of the challenges, which need to be effectively addressed include infrastructure in rural areas, low volumes of transaction, higher transaction costs and other factors such as the literacy le vels of target customers"

The RBI Governor urged the banks to make extensive use of financial sector Technology Vision document published in 2005. - PTI

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