The objective of Automated Data Flow is to ensure the submission of accurate and consistent data in prescribed format from the banks right from their core systems to RBI without any human intervention.
Nelito provides ADF solutions for various players in the Banking system like urban cooperative Banks (UCB’s), district coop Banks (DCCB’s), NBFCs, Regional Rural Banks (RRB’s) and small banks. Our integrated Enterprise reporting can provide multiple reports like Regulatory, Risk and MIS reports to any regulatory across the globe. Our Integrated solution seeks an end-to-end automated enterprise reporting to perform independently in a holistic way for timely regulatory reporting.
RBI depends on the data submitted by banks for its various functions. So, banks have to make sure that they submit correct and consistent data. To do so RBI has initiated the project on Automated Data Flow (ADF).
In the year 2010, the Reserve Bank of India (RBI) introduced a path-breaking initiative with Automated Data Flow (ADF) compliance which mandated an automated reporting system. Automated Data Flow requires a straight-through reporting process (STP) without any manual intervention and needs all business operations data to be made transparent in an automated manner to the RBI. Banks in India have to submit a set of 222 regulatory reports to the Reserve Bank of India (RBI) during different intervals.
The RBI approach paper on ADF implementation states the RBI seeks to ultimately achieve a state of complete automation for submission of reports by the banks from their core banking system solutions without any manual interventions. To reach this goal, RBI has segregated the return submission process into four logical processes.
Regulatory reporting is one of the useful tools for RBI that helps them to understand the financial health of the banks. ADF project is an important step towards achieving the end state of accurate regulatory reporting.
Regulatory reporting a tool for RBI that helps to understand the financial health of the banks in India. This information helps RBI in making certain macroeconomics decisions. It is therefore imperative that correct and accurate information is reported and submitted by the banks. The ADF project is a necessary step toward achieving the end state of accurate regulatory reporting. However, some challenges are underlying the regulatory reporting process and the ADF project.
With CBS in banks, it is felt that time has come to utilize CBS system capabilities to meet requirements like MIS, ADF, etc, in addition to regular transactional activities.
You can also read - Why Automated Data Flow (ADF) Goes Beyond Reporting for Banks in India?