FinCluez is your solution for RBS: Risk-Based Supervision

In 2010, Reserve Bank of India announced through its Approach Paper for launching its Risk based supervision system which would require banks to submit over 200 reports. RBI essentially was looking at a straightforward process of collecting data directly from the banks’ source systems’ Common Data Repository (CDR) and an automatic upload of reports to RBI’s CDR. This new process was termed ADF i.e., Automated Data Flow. RBI strongly advised banks to implement Automated Data Flow in their ecosystem to help in seamless data collection and validations. The approach paper on ADF implementation states the RBI seeks to ultimately achieve a state of complete automation in report submissions and to reach this goal, RBI has divided the return submission process in four layers:

  • Data Acquisition
  • Data Integration and Storage
  • Data Conversions
  • Data Submissions

RBI’s objective behind Automated Data Flow is to ensure submission of correct and consistent data from the banks straight from their systems to Reserve Bank without any manual intervention (to keep the quality, accuracy, integrity, and auditability of data intact). Activities like collecting or collating of data from diverse source systems and compiling them into RBI prescribed formats manually would fall within the meaning of manual intervention.

Advantages of implementing ADF (Automated Data Flow):

  • Banks’ stakeholders’ trust increases in the bank because the bank proves its transparency by complying to ADF
  • Banks can save tons of money and significant man hours by implementing 100% ADF systems
  • Banks will bring in data governance mechanisms

Challenges in implementing ADF:

Despite its advantages, there can be a lot of challenges in the way of banks to comply to the ADF requirements. It is not easy for banks to completely omit manual interventions, considering scenarios like tracking timelines, reviewing reports etc. There is also this other problem of getting the data processed because of the complexity of interacting with diverse sources systems. While a lot of banks have not been able to achieve complete ADF compliance, a huge amount of money and time has been invested for complying with this risk-based supervision. Hence, to achieve financial inclusion, banks needed a robust and automated process to submit the reports and follow the mandates of ADF (Automated Data Flow).

How can FinCluez help you in achieving 100% ADF compliance:

FinCluez is designed to help banks generate reports that are compliant with RBI’s Automated Data Flow (ADF) guidelines. It ensures 100% compliance with the RBI guidelines while paying attention to all the layers of data acquisition, integration & storage, conversion and submission.

Solutions FinCluez offers:

  • Pre-built and separate DataMarts for ADF: This ensures quicker download of latest templates configured using business rules and in-built calculations. All DataMart ready as per RBI’s end state
  • Framework to facilitate the integration of data across sources and collaboration among users with validation checks
  • User defined inputs for adjustment entries with maker checker workflows and audit trails
  • Regulatory ready with configurable frameworks
  • Built-in data migration, scheduler, archival
  • Ensures data traceability
  • Consistency checkers