Reserve Bank of India launched SupTech app ‘Daksh’
The Reserve Bank of India (RBI) Governor Shaktikanta Das has launched RBI’s new ‘SupTech’ initiative called DAKSH on Thursday (i.e.6 October). The ‘Daksh’ application will be the bank’s advanced supervisory monitoring system that is anticipated to make the supervisory processes more robust.
RBI has been taking various initiatives in strengthening supervision in which among other initiatives consist adoption of latest data and analytical tools as well as leveraging technology for implementing more efficient and automated work processes.
About SupTech app ‘DAKSH’:
- DAKSH is a web-based end-to-end workflow application.
- Through ‘DAKSH’ application RBI will monitor compliance requirements in a more focused manner with the objective of further improving the compliance culture in Supervised Entities (SEs) like Banks, NBFCs, etc.
- The application will also introduce seamless communication, inspection planning and execution, cyber incident reporting and analysis and provision of various MIS reports, among others, through a platform which enables anytime-anywhere secure access.
- The meaning of word ‘DAKSH’ is ‘efficient’ and ‘competent’ that is reflecting the underlying capabilities of the application.
RBI’s supervisory monitoring system:
- The Banking Regulation Act, 1949 empowers the Reserve Bank of India to inspect and supervise commercial banks.
- RBI’s powers over inspection and supervision are done through on-site inspection and off-site surveillance.
- Before 1993, the regulatory and supervision functions had been powered to the Department of Banking Operations and Development (DBOD).
- In 1994, the Reserve Bank of India had setup the Board for Financial Supervision (BFS) for supervising the credit institutes such as banks, development financial institutions and non-banking financial companies.
Question & Answer:
Q1. What is the name of recently launched SupTech app by the Reserve bank of India?
Q2. What is the purpose behind the Reserve Bank of India’s app ‘Daksh’?
Ans. To monitor compliance requirements in a more focused manner
Q3. The RBI’s Daksh app will supervises to which kind of institutions?
Ans. Credit institutes like commercial banks, development financial institutions and non-banking financial companies