IT Resource Sharing Guidelines for Urban Co-op Banks
No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2013-14/327 · issued 17 Oct 2013 · ~2 min read
Quick answerRBI has issued guidelines on sharing IT resources among banks to optimize costs while ensuring security, data integrity, and confidentiality. Urban Co-operative Banks must follow these guidelines when opting for shared IT resources and ensure RBI audit access.
The rule, in the simplest words
Urban Co-operative Banks can share IT stuff (like computers and software) with other banks to save money, but they must keep data safe and secret.
Before sharing IT, the bank must make a deal with the service provider that lets RBI (the bank boss) check everything, even if the computers are not in the bank's building.
The bank must follow all the safety rules about keeping information private, secure, and available even if something goes wrong.
How it plays out — a real example
An IT-governance officer in Indore, Priya, wants to use a shared computer system with other banks to lower costs. She checks the RBI rules and makes sure the service provider's contract says RBI can inspect the system anytime, even though the computers are in a different city.
What changed
RBI extended to Urban Co-operative Banks the guidelines on sharing IT resources originally issued to Scheduled Commercial Banks. These guidelines were announced in the Monetary Policy Statement 2013-14 to address the need for cost optimization through shared IT infrastructure while maintaining security and efficiency.
What it means for you
UCBs can now explore shared IT resources to reduce costs, but must strictly adhere to security, data integrity, and confidentiality norms. They must ensure that service provider agreements allow RBI audit access to all IT resources, even if not physically on bank premises.
Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.
What banks were required to do at the time
Review the enclosed RBI circular on IT resource sharing for Scheduled Commercial Banks and adopt its guidelines.
Ensure any shared IT arrangement fully addresses privacy, confidentiality, security, and business continuity.
Include clauses in service provider agreements granting RBI audit/inspection access to all IT resources used by the bank.
Verify that RBI can access all information resources even if they are not located on bank premises.
Who it affects
All Primary (Urban) Co-operative Banks, IT service providers to UCBs, RBI inspection and audit teams
❓ Common questions
Regulatory timeline
Decoded by BankPulse2026-06-18 12:11 IST
repealed_by — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
What is the main purpose of these guidelines?
To enable banks to share IT resources for cost optimization while ensuring security, data integrity, and confidentiality, as announced in the Monetary Policy Statement 2013-14.
Do UCBs need to follow the same rules as commercial banks?
Yes, UCBs must take into account the same guidelines issued to Scheduled Commercial Banks regarding security, data integrity, and confidentiality when sharing IT resources.
What must UCBs include in agreements with service providers?
Agreements must ensure that RBI has audit/inspection access to all IT resources used by the bank, even if those resources are not physically located on bank premises.
📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
Repealed byRBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #78: UBD.CO.BPD.No.31/09.18.300/2013-14 — "Sharing of Information Technology Resources by banks - guidelines" dated October 17, 2013”
📜 Read the original circular — full text as issued by RBI
RBI/2013-14/327
UBD CO BPD No.31/09.18.300/2013-14
October 17, 2013
The Chief Executive Officer
All Primary (Urban) Co-operative Banks
Dear Sir / Madam,
Sharing of Information Technology Resources by banks – guidelines
As announced in the Monetary Policy Statement 2013-14 ( paragraph 101 ), with the increased use of information technology (IT) infrastructure by banks, there is a need to examine the issue of shared IT resources in order to optimise costs while maintaining the desired levels of efficiency and security. The feasibility of such shared resources by the banking sector needs to be explored wherever possible, taking into account security issues, data integrity and confidentiality.
2. In this connection, we enclose a copy of circular on the captioned subject issued to all Scheduled Commercial Banks by the Department of Information Technology, Central Office, Reserve Bank of India, vide circular DIT CO (Policy) No.674/ 09.63.025/2013-14 dated August 30, 2013 for your information and necessary action. As the guidelines on sharing of IT resources by banks have been prepared taking into account issues relating to security, data integrity and confidentiality, Urban Co-operative Banks (UCBs) are advised to take the same into account when they opt for sharing of IT resources and ensure that all aspects relating to privacy, confidentiality, security and business continuity are fully met.
3. While entering into agreement with service provider in this regard, UCBs may ensure that the infrastructure and applications are made available for audit / inspection by RBI and that RBI should have access to all information resources that are used by banks, even if the resources are not physically located in the premises of banks.
Yours faithfully,
(A.K. Bera)
Principal Chief General Manager
Encl: As above.
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2013-14/327 · issued 17 Oct 2013. The plain-English explanation above is BankPulse’s own independent summary.
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=8515&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
Help us keep this accurate
Found an inaccuracy or have an improvement? Tell us. Every report is reviewed by our team before any change is made — nothing goes live unverified.
Public beta — plain-English informational summaries. Always verify against the official RBI source (circular number cited on every page) before making compliance, credit, treasury, audit, or operational decisions. · Join our WhatsApp channel ↗
BANKPULSE · FREE DAILY BRIEF
Get RBI updates for your role
Every important RBI update, decoded in plain English — for your career, exams & financial awareness.
We collect only your email, name and role, used solely to send your brief — never sold or shared. Withdraw anytime via the unsubscribe link in any email. Independent platform, not affiliated with the RBI. Information, not legal advice.
REPORT AN ERROR · BETA
Spotted an error? Earn 500 BankPulse Credits
Help us stay accurate. If your correction is verified true and approved by our founder, you earn 500 BankPulse Credits — redeemable when the platform monetises.
Reviewed by a human before any credit is awarded. We never change the site from crowd input without verification.
WANT A NEW FEATURE · BETA
What would make BankPulse more useful for you?
Tell us what to build next — a tool, a data view, a role page, anything. We read every suggestion.
Thank you — your ideas directly shape what we build.