CyLawCom Audit for Cooperative Banks
The recent turmoil created in Bangalore by action of RBI on Sauharda Cooperative Bank and some of the moves which RBI has taken in recent days on the regulatory issues of Cooperative Banks has revived the memories of the regulatory transformation that was unleashed in India on the NBFC industry in the post CRB scam period. In the aftermath of the measures taken by RBI and SEBI during that time, the then thriving NBFC industry vanished from the Indian scene. Keen industry observers have never agreed that these developments have necessarily been beneficial to the Indian community. The undercurrents felt now in the Cooperative Banking field indicate the immediate necessity for some counter measures to prevent the NBFC story being repeated in the Cooperative banking sector. As a strategy to respond to the emerging developments in the Cooperaive Banking industry, it is felt that there is a need to develop of a process of Voluntary Compliance of regulations in a manner that is likely to strengthen a Compliant Bank to successfully meet the emerging changes in the environment. The strategy is to always keep ahead of regulations by a few steps so that any move of RBI will be more than adequately addressed by the current compliance practices of the Bank. Since we cannot conceive a Banking institution today without a computerized environment, such regulations have a strong bias to systems of IT controls and Cyber Law Compliance. Hence the CyLawCom practice pioneered by Naavi is being expanded to include this industry segment. This Voluntary Compliance programme will be termed CyLawCom-CoopBank. The CyLawCom-CoopBank will include ITA-2000 compliance, RBI Guidance on various issues of operations and the Use of technology in Cooperative Banks, Principles of international regulations, accounting standards and IT Security Standards relating to sound management and disclosure principles properly adopted to the requirements of the Indian Cooperative Banks. Any suggestions in this regard from interested persons is welcome.
Naavi Dated: May 26, 2005
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