Startup

Clarification on Centralised Information Management System (CIMS) 

The Centralised Information Management System (CIMS) was introduced by the Reserve Bank of India (RBI) to revolutionise data processing, analysis, and governance. The system uses innovative technology to manage massive data, making it possible to perform robust statistical analysis, text mining, visual analytics, and data mining. Announcing the introduction at the 17th Statistics Day Conference in Mumbai, Governor Shaktikanta Das emphasised the system’s potential to revolutionise economic analysis, supervision, monitoring, and enforcement in a variety of fields.

Centralised Information Management System

The Centralised Information Management System (CIMS) was introduced by the Reserve Bank of India (RBI) to enhance the efficacy and efficiency of its regulatory reporting system. Banks and other regulated entities can submit their regulatory reports electronically using the cloud-based CIMS technology. Banks and other regulated firms will have less work to do as a result, and the RBI will benefit from improved timeliness and quality of its regulatory data.

For the regulatory reporting structure of the RBI, CIMS represents a considerable advancement. The RBI will be better able to keep an eye on the financial system and respond quickly to any new dangers. The RBI will benefit from improved communication with banks and other regulated companies due to CIMS.

According to the RBI, CIMS will be implemented in stages and is anticipated to be fully functional by the end of 2023.

The Launch of a Centralised Information Management System

The RBI has launched a significant project called CIMS to boost the efficacy and efficiency of its regulatory reporting structure. It represents a sizable advancement for the Indian financial system and is anticipated to improve the system’s resilience and stability.

In honour of the late Professor Prasanta Chandra Mahalanobis, who made significant contributions to the Indian statistical system and economic planning, the Reserve Bank held its 17th Annual Statistics Day Conference as a part of the “National Statistics Day” celebrations.

The Governor emphasised the value of timely, accurate data and statistical analysis in creating policy in his inauguration speech. He made note of the Reserve Bank’s treatment of data as a “public good” and how it routinely upgrades its technological infrastructure to facilitate smooth information management, particularly through ongoing interactions with regulated/reporting firms. The coverage, quality, and timeliness of the data have all improved as a result of these initiatives.

Key Points about the launch of Centralised Information Management System

The key points about the launch of the Centralised Information Management System are discussed below:

• Data is stored in CIMS. A platform for power users to conduct data mining, text mining, visual analytics, and advanced statistical analysis connecting data from various domains, such as the financial, external, fiscal, corporate, and real sectors, as well as prices, this system uses cutting-edge technology to manage Big data.
• Beginning with scheduled commercial banks, the new system will eventually include urban cooperative banks (UCBs) and non-banking financial businesses (NBFCs) as well.
• In the upcoming months, CIMS will implement a key recommendation for system-based submission of the remaining email-based reporting.
• More data will be made available for public use, and it will also facilitate online statistical analysis conducted by third parties. Regulated entities will also be able to view their historical data and their evaluation of the system’s quality metrics.

Innovative Data Warehouse

• As RBI’s cutting-edge data warehouse, CIMS enables thorough data flow management.
• It initially concentrates on scheduled commercial banks’ reporting and will progressively include urban cooperative banks and non-banking financial institutions.

Improved Data Dissemination

• CIMS makes it possible to gather, process, and distribute a wider variety of data, including the weekly statistical supplement (WSS)¹ from the RBI.
• More data are accessible to the general public, enabling online statistical analysis by outside users.

Data Access for Regulated Entities

• Within the CIMS, regulated entities have access to their historical data as well as evaluations of quality metrics.
• This gives organisations the ability to efficiently monitor and assess their own performance.

Streamlining Reporting Mechanism

• Reducing the burden of regulatory compliance and streamlining the reporting procedure are two recommendations made by RBI’s Regulations Review Authority 2.0.
• A few of the proposals have already been put into practice, while more are being worked on.
• The forthcoming deployment using CIMS will replace email-based reporting with system-based submission.

According to the RBI, CIMS will be implemented in stages and is anticipated to be fully functional by the end of 2023. Here are a few advantages of CIMS:

• Improved regulatory reporting effectiveness and efficiency
• lessening of the workload for banks and other regulated enterprises
• Improved regulatory data accuracy and timeliness
• Increased supervision of the financial system
• Better interaction with banks and other regulated entities

Change in Economic Analysis and Supervision

• The implementation of CIMS will result in a profound change in the way the RBI conducts economic analysis, supervision, monitoring, and enforcement in a variety of areas.
• The system’s capabilities allow for sophisticated statistical analysis and the blending of data from many industries.

Technological developments

• To effectively manage massive data, CIMS makes use of cutting-edge technologies.
• It offers advanced statistical analysis, text mining, visual analytics, and data mining tools for power users.

Data as a Public Benefit

• The RBI views data as a public benefit and is committed to spreading more data into the open space.
• Instead of focusing on fulfilling specific needs, the general transmission of information is prioritised.

Conclusion

The new system will facilitate online statistical analysis by third-party users and increase the amount of data made available for public usage. Regulated entities will also have access to their historical data and their evaluation of the system’s quality parameters. Overall, the new idea of RBI’s launch of a centralised information management system is a good move in regulatory supervision, monitoring and enforcement.

Frequently Asked Questions: –

1. https://rbi.org.in/Scripts/BS_ViewWSS.aspx