Supervisory data: RBI issues single document for compliance requirements

Mumbai: The Reserve Bank of India (RBI) on Tuesday issued a single document consolidating all directions to ensure compliance related to the submission of supervisory data by banks and non-banking financing companies (NBFC).

The 'Master Direction – Reserve Bank of India (Filing of Supervisory Returns) Directions - 2024' provides a broader framework to understand the purpose of the returns and harmonises the timelines for their submission, the RBI said in a statement.

All Supervised Entities (SEs) -- commercial banks, cooperative banks, Exim Bank, NABARD, NHB, SIDBI, NABFID, and NBFCs -- are required to submit certain supervisory returns to the Reserve Bank as per various directions, circulars, and notifications issued by the central bank from time to time.

Supervisory returns refer to all periodic / ad-hoc data submitted to RBI in formats prescribed from time to time, irrespective of the technology platform, periodicity and the mode of submission.

"In order to create a single reference for all supervisory returns and to harmonize the timelines for filing of returns, all the relevant instructions have been rationalised and consolidated into a single Master Direction," the RBI said.

The Master Direction also contains the list of notifications and circulars which have been repealed.

The set of applicable returns to be filed by SEs and the general description of the returns too have been compiled in one single document.

"This Direction removes certain instructions that have become obsolete and consolidates twenty existing instructions, including one Master Direction for Non-Banking Financial Companies," the central bank added.

It creates a single document for ensuring compliance related to submission of all supervisory data, the RBI said, and added a summary of all changes made is also included in the Master Direction for ease of reference.

SEs were facing certain issues while complying with these instructions due to changes in technology platforms, modes of submission, and variations in the return submission timeframes.

In this context, the Reserve Bank, in August last year, had announced that the Master Direction will be issued to provide greater clarity and reduce the compliance burden.

On responsibilities of board and senior management of SEs, the Master Direction said the risk data aggregation capabilities and risk reporting practices should be fully documented and subject to high standards of validation that are aligned with bank’s other independent risk management reviews.

The validation of risk data aggregation and risk reporting practices should be conducted using staff with specific IT, data and reporting expertise.

"Board and senior management should ensure that adequate resources are deployed for the purpose," it added.

RBI said a SE should design, build and maintain the data architecture and supporting IT infrastructure for accurate, complete and timely data aggregation and reporting not only in normal times but also during times of stress or crisis.