Some years ago RBI mandated the scheduled banks Public, Private and Foreign) to automate its regulatory reporting (MISADF) project. The intention was to ensure accurate and timely submission of reports without manual intervention and adoption of XBRL. Three years into the project many banks have achieved various levels of proficiency in achieving this objective.
The RBI published a conceptual model to achieve this end stage to automate the submission though it left it to the banks to select their own methodologies to achieve the objective.
It is likely that the other players in the Banking system like urban cooperative Banks (UCB’s), district coop Banks (DCCB’s), NBFCs, Regional Rural Banks (RRB’s) and the new payment and small banks will need to take this route in the near future.
Already RBI has issued circulars to Urban Co-Operative Banks advising them to submit some reports like in XBRL format Return on ‘Asset Liability Management (ALM)’ through XBRL based electronic filling platform, and also submission of Statement of Compliance with CRR and SLR’ also in XBRL by April 2014
After three years Nelito Systems can proudly claim to have 5 reference sites which have achieved most of the objectives. A sixth large bank which has adopted to go the enterprise data warehousing route is leveraging Nelito’s Fincraft – MISADF solution for quick results.
Data quality is work in progress, and is being done by most banks to ensure that data is correct. Core processes are being reengineered to achieve better accuracy .Many of the banks are leveraging the CDR for internal MIS requirements. Nelito is partnering banks to standardize, deduce, cleanse, collect and enter data.
It will be prudent to work with a player who has a working solution, all the experience off implementation, a strong focus on cooperative banks in India and immense banking knowledge to ensure smooth implementation.
The ready to use product could bring down costs and implementation timelines dramatically and the experience gained though the last few years can be leveraged for quick Return on Investment benefits. Nelito’s present FinCraftTM Core Banking customers and future users would derive maximum benefits with this proven solution.