The Reserve Bank of India vide its notification dated 12th August 2020, has directed the urban co-operative banks having total assets of ₹2000 crore or above as on 31st March, 2020 to implement system-based asset classification with from 30th June, 2021. The system-based asset classification refers to asset classification carried out by computerized systems of a bank in an automated manner.
UCBs with assets of ₹1,000 crore or above but less than ₹2,000 crore as on 31st March 2020, having self-assessed themselves as being under “Level III or Level IV” on comprehensive cybersecurity framework for UCBs shall implement the system based asset classification from 30 September 2021.
Further, RBI has also asked all concerned UCBs to conduct pilot/parallel run and evaluate the results for accuracy/integrity of the asset classification in compliance with the RBI instructions so that they can implement it from the appointed date.
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