National Electronic Funds Transfer(NEFT) System-Business Continuity Plan

National Electronic Funds Transfer(NEFT) System-Business Continuity Plan

On 29^th July, 2009, Reserve Bank of India, DPSS, issued a Notification, (RBI/2009-10/108 DPSS (CO) EPPD No.192 / 04.03.02 / 2009-10 dated July 29, 2009), stressing on the need for Business Continuity Plan in National Electronic Funds Transfer (NEFT) System, of our country.

The complete Notification can be accessed at

http://www.rbi.org.in/scripts/NotificationUser.aspx?Id=5191&Mode=0

The tremendous growth in NEFT Transactions in our country, heightens   the need for a effective BCP for NEFT.

Business Continuity is the ability of a business to continue its operations with minimal disruption or downtime in the advent of natural or intentional disasters. BC begins with a plan that addresses all risks and secures systems that are vital to business operations.

A good BCP must factor in all the risks, and should ensure continued availability, reliability, and recoverability of resources. It should balance the costs of risk management with the opportunity cost of not taking appropriate action.

Till now, the BCP drills used take place IDBRT and RBI’s NEFT Back-up site. Now, Reserve Bank of India, desires that Banks too should be part of such drills, atleast once in a quarter.

Of course, the costs for back-up site should not discourage Banks, in having a effective BCP in place. Innovative strategies like sharing of resources, between Banks, can 01) Bring down costs 02) Ensure adequate Trained Staff at BCP Locations.

A good BCP can act as a motivator, for the common folk, to switch over to ePayments.