RBI

Clarification on – DAKSH, Reserve Bank’s Advanced Supervisory Monitoring System (e-PRISM)

Clarification on – DAKSH, Reserve Bank’s Advanced Supervisory Monitoring System (e-PRISM)

The Reserve Bank of India has been taking several steps to increase supervision, including adopting the most recent data and analytical tools and utilizing technology to build automated and efficient work procedures. The RBI has launched a new Sup-Tech initiative called “(DAKSH) – Reserve Bank’s Advanced Supervisory Monitoring System,” which is meant to strengthen the supervisory processes as part of this ongoing effort. Let us discuss the topic DAKSH, Reserve Bank’s Advanced Supervisory Monitoring System, in detail.

DAKSH

The programme would enable seamless communication, inspection planning and execution, reporting and analysis of cyber incidents, and the production of multiple MIS reports, among other things. It will also offer secure access from anywhere at any time.

DAKSH denotes competence and efficiency, demonstrating the application’s core strengths. With the aim of further enhancing the compliance culture in SEs (Supervised Entities) like Non-Banking Financial Companies, Banks, etc., RBI shall monitor compliance needs in a more targeted manner through “(DAKSH),” a web-based end-to-end workflow platform. 

Through a Platform that allows anytime-anywhere secure access, the application will also enable seamless communication, inspection planning and execution, cyber incident reporting and analysis, supply of various MIS reports, etc.                                                                          

RBI’s Statement

The Reserve Bank of India mentioned in a statement that it has been undertaking several steps to tighten supervision, including the use of cutting-edge data and analytical tools, as well as utilizing technology to construct more effective and automated work procedures.

Usage

DAKSH offers additional functionalities, such as online screen-based reporting, a maker-checker facility, an option for requesting more information, the facility to issue advisories/alerts, and the generation of dashboards and reports, with added facility of existing bulk uploading to report payment frauds.

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The circular also stated that all RBI-authorized payment system operators and payment system participants in India are mandated to report all attempted and actual payment frauds, regardless of the amount declared by the businesses or their clients.

The issuer bank, PPI provider, or credit card issuing NBFCs, whose issued payment instrument was used in the fraud, are responsible for reporting any payment fraud transactions. Before reporting payment fraud to RBI on an individual transaction basis, entities must verify in their systems the information provided by customers regarding payment fraud to ensure its accuracy and completeness.

According to the deadlines established (currently within seven calendar days from the date of reporting by the customer/date of detection by the entity), entities are required to report payment frauds (domestic and international) to CPFIR.

According to the circular, entities may continue to report payment frauds using the bulk upload feature in DAKSH or individually report payment frauds online utilizing the screen-based feature under the incident module of the DAKSH platform.

Entities cannot report any fraud in EDSP when payment fraud reporting is live in DAKSH now, and it is effective from January 1, 2023. However, until December 31, 2022, businesses may continue to update and close payment frauds that have been reported in the EDSP. The historical data would then be transferred from EDSP to DAKSH, according to RBI.

What Is Financial Supervision? 

The Board for Financial Supervision (BFS) provides direction for the Reserve Bank of India as it carries out this duty. The Board was established in November 1994 as a committee of the Reserve Bank of India’s Central Board of Directors. BFS’s main goal is to carry out comprehensive supervision of the financial sector, which includes commercial banks, financial institutions, and non-banking financing enterprises.

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Constitution of Board

The Governor is the Chair Person of the Board, which is established with four directors from the Central Board for terms of two years. Ex-officio members include the RBI’s Deputy Governors. One Deputy Governor is proposed as the Vice-Chairman of the Board; typically, the Deputy Governor is responsible for banking regulation and oversight.

Initiatives taken by the Board of Financial Supervision

  • Restructuring the system of bank inspections.
  • Off-site surveillance is implemented.
  • Statutory auditors’ roles are strengthened, and supervised institutions’ internal defences are strengthened.

Conclusion

The RBI stated with the notification that it will switch its advanced supervising monetary system to DAKSH as of January 1, 2023, as part of efforts to improve efficiency, automate the fraud management process, and streamline reporting. It is important to follow the rules of RBI at all stages for compliance.

FAQs: –

  1. What do you mean by Daksh?

    With the aim of further enhancing the compliance culture in supervised entities (SEs), such as banks and non-banking financing firms (NBFCs), RBI will identify compliance needs more carefully using Daksh, a web-based end-to-end workflow platform.

  2. What does the supervisory monitoring system mean?

    a.       The programme would make communication, planning, and execution of inspections seamless.
    b.      Additionally, Daksh will permit the reporting and analysis of cyber incidents as well as the delivery of management information system (MIS) reports. Through a platform that permits anytime-anywhere secure access, the application will make all of these services available.
    c.       Daksh stands for “efficient” and “competent,” indicating the application's core abilities.

  3. What purpose does RBI serve?

    Due to the responsibilities it performs, the RBI, the Central Bank of India, is frequently referred to as a bank of banks. The Reserve Bank of India Act of 1934 allowed for the establishment of the Bank on April 1, 1935. The RBI's original administrative centre was in Calcutta. But it was moved to Mumbai permanently in 1937.

  4. Who is the RBI governor now?

    Mr Shaktikanta Das has been the Governor of the Reserve Bank of India since October 2021. He is the 25th RBI Governor and is in charge of all RBI duties. The RBI plays a crucial role in regulating financial transactions in the nation; among its primary responsibilities are issuing bank notes and serving as the custodian of commercial banks' cash reserves. 

  5. How does Daksh track compliance?

    To further enhance the compliance culture in Supervised Entities (SEs), such as Banks and NBFCs, RBI will monitor compliance needs in a more concentrated manner through DAKSH, a web-based end-to-end workflow platform.

  6. What Bank introduced Daksh?

    The Reserve Bank of India (RBI) unveiled a brand-new “SupTech” programme under the name DAKSH.

  7. What is the full form of PRISM in RBI?

    The full form of PRISM is Platform for Regulated Entities for Integrated Supervision and Monitoring (PRISM) is being implemented by the Reserve Bank of India (RBI).

  8. Which module does RBI intend to transfer to the Daksh platform?

    The Reserve Bank of India announced that starting on January 1, 2023, the Advanced Supervisory Monitoring System (DAKSH) of the RBI will replace the fraud reporting module known as the Central Payments Fraud Information Registry (CPFIR) for reporting payment frauds by scheduled commercial banks and non-bank Prepaid Payment Instrument (PPI) issuers.

  9. What is a sup tech initiative?

    The regulatory body uses Sup tech, also known as supervisor technology, to track and ensure that the regulated firms are adhering to the law. The institutions that are subject to their regulation provide data feeds to the regulators.

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