RBI ask banks to ensure that adequate Business Continuity Plan are in place for

[gopu]

July 29, 2009: NEFT system was operationalised during November 2005 and 57263 branches of 91 banks spread across the length and breadth of the country participate in the NEFT system as on date. During the month of June 2009 alone, around 4.5 million transactions were processed through the system. The NEFT system has thus emerged as a system-wide important payment system.

With the increase in reach and volumes, a well-documented and tested Business Continuity Plan (BCP) with adequate Disaster-Recovery (DR) preparedness assumes significance. Needless to stress, only periodic DR drills can ensure availability and operation of the NEFT system to a reasonable extent in case of any contingency. DR drills involving IDRBT and the NEFT back-up arrangements at our data centre are carried out by us at periodic intervals.

Annual Policy Statement of the Governor, Reserve Bank of India, announced on April 21, 2009 highlighted the need for effective DR arrangements for critical payment systems and periodic drills to test the adequacy thereof.

RBI has asked banks toensure that adequate DR arrangements are in place and NEFT operations are carried out using the DR infrastructure at regular intervals, at least once in a quarter. Banks are also advised to participates effectively in the NEFT DR drills carried out by Reserve Bank.