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RBI Issues Master Direction to Ease Reporting Norms for REs

The Reserve Bank of India (RBI) has introduced a master direction aimed at simplifying reporting norms for regulated entities (REs). This initiative consolidates 20 existing instructions, streamlining processes for finance companies and others. The directive focuses on reducing compliance burden while enhancing clarity and efficiency in reporting.

Rationalization and Consolidation

  • RBI consolidates 20 existing instructions into a single master direction, eliminating obsolete guidelines.
  • The move harmonizes timelines for filing returns, simplifying compliance for supervised entities.
  • Aimed at providing clarity, brevity, and harmonization to reporting instructions.

Enhanced Supervisory Measures

  • Emphasizes the need for documented risk data aggregation capabilities and practices.
  • Calls for high standards of validation using specialized IT, data, and reporting expertise.
  • Boards and senior management of REs are tasked with ensuring robust risk management frameworks, including data quality assessment and management.

Changes in Filing Norms

  • Audited returns now require filing within five days of the auditor’s signing reports, reducing the earlier timeframe from seven days.
  • The regulatory framework for NBFCs has been refined into four layers, with corresponding adjustments in return schedules.

Business Continuity and Automation

  • Entities are mandated to develop and maintain data architecture and IT infrastructure for accurate and timely reporting, even during times of crisis.
  • Data aggregation and reporting practices are integrated into business continuity planning, subject to business impact analysis.
  • Emphasis on reconciliation of returns and risk reports with internal sources for accuracy, alongside a push for increased automation in data generation.


RBI Issues Master Direction to Ease Reporting Norms for REs_4.1



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