However, a couple of banks reported minor glitches in a few softwares which were quickly set right without any impact on business continuity, Reserve Bank said in a statement here.

Computer systems at RBI, banks and financial institutions have been found to be working satisfactorily and free from the feared Y2K bug, on the basis of reports received, the central bank said.

All banks and financial institutions have reported normal functioning during forenoon without any problem and those bank branches which were open for public transactions on Sunday have also reported normal operations.All the 103 Sunday working branches of State Bank of India conducted full-fledged public transactions.

The cross-border inward and outward communications have started moving on the swift network, in RBI's department of external investments and operations.

All Indian banks having operations at international centres also reported normal functioning.