states such as maharashtra, gujarat, karnataka, andhra pradesh and tamil nadu account for over 80 % of urban cooperative banks presence and 75 % of their total deposits. predominant concentration of urban cooperative banks in these 5 states is mainly on account of emergence of strong cooperative leadership. ucbs normally confine their area of operation to localised geographical regions, but over a period of time, their area of operation has crossed the frontiers of districts and in some cases the states of their registration. continuing the ideals and beliefs of cooperative pioneers, ucbs seek to bring about an alignment of human and social development with their business objectives. at present, the bigger question is can we extend or diversify the development of strong, vibrant and financially sound ucbs to the other regions of the country as well to cater to the requirements of the people at the base level and bring them under the banking fold. there is a clear indication as per the available data as mentioned earlier that a huge potential exists for the ucbs to play a more proactive role in the banking sector in the coming years. the potential exists, but how important a role the ucbs can play in our scheme for an inclusive growth? why should we have more thrust on the role played by the ucbs? in a regime of planned development, sound cooperative banking movement is an instrument, which while retaining some of the advantages of decentralisation and local initiative, will yet serve willingly and readily the overall purposes and directives of the developmental plans of the government in the identified sectors. it is an indispensable instrument of planned economic action in a democracy. the client profile of ucbs today predominantly comprise of priority sector segments viz. small business establishments, ssis, retail traders, professionals, self - employed persons and srtos, etc. who would not normally find it easy to have access to large commercial banks. in urban areas, however, there are a number of underbanked people like artisans, labourers, small business men, retailers, etc. of smaller means who find it difficult to organise themselves in keeping with the requirements of modern times. it is highly desirable on social as well as on economic grounds, that members of this class should be enabled to be brought into the banking fold and the ucbs certainly can take a lead into this. role of rbi – efforts to ensure sustainable growth and functioning of ucbs while the cooperative banking sector had shown spectacular growth during the 1990 ’ s exhibiting substantial potential for sustained growth, there were also concerns regarding inherent

factor which comes to fore only in times of disaster, while in organizations that manage security well, the ownership of security vests at the highest levels of governance. implementing security is often considered a one - time activity, which is effectively discharged when funding approvals are accorded for a technology stack. it is often perceived that having a set of information security tools will ensure adequate protection for a reasonable period of time. the information security landscape is dynamic in nature and techniques that worked at one point may not suffice for that year. often a regular high level review and monitoring framework is not in place, leading to a reactive rather than proactive approach to information security. is audits 21. banks may look at is audits being conducted periodically, the scope of audits may include : technology review covering all the technology components of the it projects such as : ( a ) ethical hacking : vulnerability assessment and penetration testing of the network. ( b ) application security : application security audit to identify known vulnerabilities and source code review : ( c ) design review : review the it architecture from security point of view and identify single point of failure. process review covering all the process related to security adopted by the it project. third party review : review should the security controls deployed by the third parties on the government data / information. business continuity plans 22. if a bank is to survive a disaster, it must select the “ right ” strategy. development of alternative business continuity plan strategies should be based upon the outcome of the business impact analysis. cyber frauds and security 23. even though the actual value of losses accruing on account of cyber crime in india might not be substantial, nearly 39 per cent of these cases are related to banks and financial institutions excluding those of the government. the cyber criminals find banks to be a bis central bankers ’ speeches lucrative target for their ingenuity. instances of credit - card fraud have become common given the growing popularity of credit card transactions, internet banking and atms. as of now, the cyber criminals seem to be a few clicks ahead of cyber - crime sleuths. this is where the banks may need to take preventive action. fraud management 24. frauds directly impact the bottom line, hence it would be imperative that banks combat them effectively. if the business intelligence framework unifies various data sources, it would be possible to mine the data, detect suspicious transactions on different online channels and suggest an appropriate action. therefore, banks need to put in place