Case Study

How UST Modus enabled Punjab National Bank to meet GST regulatory deadlines with automated core banking integration

Punjab National Bank needed to integrate GST compliance into its Finacle core banking platform without disrupting daily transaction processing. UST Modus automated GST collection across transaction types, customized Finacle for tax processing, and delivered a stable production rollout within strict regulatory timelines, ensuring full compliance while maintaining uninterrupted banking operations.

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OUR CLIENT

Punjab National Bank is one of India’s largest public sector banks, serving millions of customers through an extensive national branch and digital banking network. The bank processes high volumes of financial transactions daily across retail, corporate, and digital channels, supported by the Finacle core banking platform.

THE CHALLENGE

Integrating GST compliance into core banking operations

The introduction of Goods and Services Tax (GST) requires banks to update transaction processing and tax accounting systems to comply with new regulatory requirements.

For Punjab National Bank, this change introduced regulatory and operational pressure. The bank needed to incorporate GST tax logic into core banking transactions without slowing processing speeds or creating reporting inconsistencies.

The key challenges included:

Implementing GST transaction processing in banking systems while maintaining the existing Finacle product functionality
Automating GST tax collection across multiple banking transaction types and service channels
Maintaining accurate tax payment history and general ledger entries for GST-related transactions
Delivering the implementation within strict regulatory timelines so the bank could complete testing before production rollout

For Punjab National Bank, these challenges meant integrating GST logic directly into its Finacle core banking platform while ensuring that everyday banking operations continued without disruption.

THE TRANSFORMATION

Automated GST processing integrated into Finacle core banking

Modus, a UST company, implemented a structured GST Implementation for banks program that enabled GST automation and regulatory compliance within the bank’s existing Finacle environment.

The engagement focused on embedding GST logic directly into transaction processing so tax compliance could occur automatically during everyday banking operations.

Core banking GST integration: UST Modus implemented GST integration in core banking by configuring system parameters and customizing Finacle functionality to automate GST collection across different transaction types and channels.
Finacle customization for tax automation: Through Finacle GST customization, the team enhanced the system's capabilities to automate banking GST transactions, ensuring that GST charges were calculated and applied automatically during transaction processing.
Regulatory-aligned implementation and testing: The implementation followed government GST guidelines and included mock User Acceptance Testing (UAT) runs to validate system stability and regulatory compliance before production deployment.
Stabilization and operational support: After go-live, UST Modus provided post-production GST support, including data corrections and performance fine-tuning, ensuring stable GST transaction processing within the bank’s core banking system.

THE IMPACT

Regulatory compliance delivered without disrupting banking operations

Through this engagement, Modus, a UST company, enabled Punjab National Bank to integrate GST processing into its core banking platform while maintaining operational continuity.

The results included:

Reduced operational effort by eliminating manual GST tax calculation across banking transactions
Maintained uninterrupted transaction processing while introducing new regulatory tax requirements
Improved financial accuracy through automated GST recordkeeping and general ledger integration
Ensured full GST regulatory compliance within mandated government rollout timelines.

With structured GST implementation, the Punjab National Bank successfully integrated regulatory tax processing into its core banking platform while maintaining consistent transaction operations. UST Modus supported this engagement for Punjab National Bank through EdgeVerve (Infosys).

Regulatory changes often require rapid updates to core banking systems.
Discover how we help financial institutions implement regulatory requirements.