Banks asked to enable core banking in Hindi


Why it in news?

    • The Home Ministry has asked all banks, private and public sector, to enable their core banking facility in Hindi.

Significance

    •  banks have been asked to update databases in Hindi and customers should not be compelled to fill forms only in English.
    • Banks should modulate the software in such a way that a customer can get the passbook in Hindi. It should also be in regional languages. Some banks in Gujarat and Maharashtra have done it. ATMs already have a Hindi option
    • as per the Official Languages Act, 1963 there was no provision of punitive action for not using Hindi in official communication but the language could only be promoted through “persuasion and encouragement.” 

Official Language

    • Part XVII of the Constitution deals with the official language in Articles 343 to 351.
    • Its provisions are divided into four heads—Language of the Union, Regional languages, Language of the judiciary and texts of laws and Special directives.
    • Hindi written in Devanagari script is to be the official language of the Union.

Allegations of Imposing Hindi?

    • DMK leader M.K. Stalin had accused the BJP government at the Centre of imposing Hindi on “non-Hindi speaking” States and turning India into “Hindia".
    • In July Karnataka Chief Minister Siddaramaiah wrote to the Centre stating that Bangalore Metro Rail Corporation should redesign its signboards without using Hindi language and script. 

What is meant by Core banking?

    • Core banking is a banking service provided by a group of networked bank branches where customers may access their bank account and perform basic transactions from any of the member branch offices. 

Benefits of core banking

Benefits of Core banking –

Core banking solutions are beneficial to both banks as well as customers.

A] Benefits For Customers

      • Quicker services at the bank counters for routine transactions like cash deposits, withdrawal, passbooks,  statement of accounts, demand drafts etc.
      • Anywhere banking by eliminating branch banking.
      • Provision of banking services 24 X 7.
      • Fast payment processing through Internet banking, mobile banking .
      • Anytime any where banking through ATMs.
      • All branches access applications from central servers/datacenter , so deposits made in any branch reflects  immediately and customer can withdraw money from any other branch throughout the world.
      • CBS is very helpful to people living in rural areas. The farmers can receive e-payments towards subsidy etc. in his account directly. Transfer of funds from the cities to the villages and vice versa will be done easily .

B] Benefits For Banks

    • Process standardization within bank & branches.
    • Retention of customers through better customer service.
    • Accuracy in transactions & minimization of errors.
    • Improved management  of documentation & records – having centralized databases results in quick gathering of data & MIS reports.
    • Ease in submission of various reports to the Government & Regulatory boards like RBI.
    • Convenience in opening accounts, processing cash, servicing loans, calculating interest, implementing change in policies like changing interest rates etc. 
Source: The Hindu

Posted by Jawwad Kazi on 2nd Oct 2017
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