The Reserve Bank of India (RBI) is planning to develop a supervisory mechanism in the near future. Off-site and on-site oversight of high-tech operations such as digital banking and cyber security will be possible with the system. This information was presented during a conference by Deputy Governor MK Jain. At the same time, the Reserve Bank of India (RBI) has changed the PCA framework for Scheduled Commercial Banks (SCBs).
“A web-based and end-to-end workflow automation system has been built for ongoing engagement with the monitored NTT,” the Deputy Governor added. Inspection, compliance, and cyber security issues can all be reported using this method.
RBI is increasingly leveraging data and analytical tools for off-site oversight, according to Jain. A redesigned data warehouse and unified information management system are also helping the central bank improve its capabilities. Meanwhile, the Reserve Bank of India (RBI) has updated the PCA framework for Scheduled Commercial Banks (SCBs). The new rules will take effect on January 1, 2022. The PCA framework’s goal, according to the RBI, is to allow for timely supervisory action so that the monitored NTT can take steps to restore financial health. The PCA framework, according to the RBI, would apply to all banks operating in India. It also covers international banks with branches or subsidiaries in the United States. On the basis of audited annual financial statements and RBI supervisory review, the bank would be put under PCA. Market discipline is also a goal of the new framework.