Amit Shah Launches ‘Bank in a Box’, Security Operations Centre for Urban Cooperative Banks

Union Home Minister and Minister of Cooperation Amit Shah has launched the major technology and cybersecurity initiative which is aimed at to modernize the Urban Cooperative Banks (UCBs) all over India. At the ‘Sahkar Nav-Kranti’ programme in Mumbai, Union Minister Amit Shah has inaugurated the new premises of the National Urban Cooperative Finance and Development Corporation (NUCFDC) and launched ‘Bank in a Box’. It is an integrated technology platform which offers core banking, digital payments, cloud infrastructure and regulatory compliance solutions. Along with it, a dedicated Security Operations Centre (SOC) was also launched to provide the round-the-clock cybersecurity support to participating UCBs.

What Is ‘Bank in a Box’?

‘Bank in a Box’ refers to a system which is intended to help small and even single branch Urban Cooperative Banks adopt modern day banking technology without having to invest individually in the process.

‘Bank in a box’ includes,

• Core banking
• Digital payments
• Cloud
• Compliance solutions
• Loans origination systems
• Fraud prevention through artificial intelligence
• Services based on Aadhaar platform
• Automated regulatory compliance

Rather than each bank investing in and then maintaining technology individually, the umbrella organization will enable sharing of services and contracts to minimize costs.

Security Operations Centre to Help Enhance Cybersecurity

As the banking becomes more digitized, the need for cybersecurity in cooperative banks has become increasingly significant. The new launch of Security Operations Centre (SOC) will ensure continuous monitoring and security support for the participating UCBs.

The idea behind the initiative is to enable banks to protect themselves from new digital threats.

NUCFDC will also give access to technologies like MuleHunter, which helps in detection of suspicious transactions and mule accounts.

NUCFDC Acquires More Institutionally Important Status

The government has made NUCFDC the Umbrella Organization for Urban Cooperative Banks, offering technical, institutional and regulatory support to the sector.

Amit Shah has also said the role of this organization is not making profits but to sort out UCBs and to make them ready to face challenges at the national and international level.

Approximately 650 of the total 1,400 Urban Cooperative Banks have already become members of this organization. Capitalization of NUCFDC has taken place with an approximate amount of ₹306 crore, mobilized with help from UCBs and the cooperative sector.

Maharashtra To Be New NUCFDC Headquarters

Amit Shah further announced that the NUCFDC will move its headquarters from the National Capital Delhi to Maharashtra since the state of Maharashtra has the largest number of Urban Cooperative Banks in the country.

Maharashtra alone has 449 UCBs, and the states of Maharashtra, Gujarat, Goa, and Karnataka altogether have a substantial number of UCBs in India.