What changed
The earlier requirement for banks to submit quarterly statements on financial inclusion indicators, as per circular RPCD.MFFI.No 11324/12.01.011/2007-08 dated April 24, 2008, has been discontinued. This change is because the RBI now monitors financial inclusion progress through comprehensive monthly reports covering both quantitative and qualitative parameters.
What it means for you
Banks no longer need to prepare and submit separate quarterly reports on financial inclusion indicators, reducing compliance burden. However, they must ensure their monthly reporting is robust and covers all required parameters, as this is now the primary monitoring tool for financial inclusion plans.
What you must do
- Stop preparing and submitting the quarterly Financial Inclusion Indicators report immediately.
- Ensure your monthly reporting system captures all quantitative and qualitative parameters required for financial inclusion plan monitoring.
- Review internal processes to align with the new monthly reporting framework and avoid any gaps in data submission.
- Communicate this change to relevant teams handling regulatory reporting to prevent unnecessary submissions.
Who it affects
All scheduled commercial banks (excluding Regional Rural Banks), Compliance and reporting departments, Financial inclusion teams within banks
Why was the quarterly reporting discontinued?
The RBI decided to discontinue it because financial inclusion progress is now monitored through more detailed monthly reports that include both quantitative and qualitative parameters, making the quarterly report redundant.
Do we need to submit any other report in place of the quarterly one?
No separate replacement report is required. Instead, banks must ensure their existing monthly reports comprehensively cover all financial inclusion parameters as specified by the RBI.
Which banks are affected by this discontinuation?
All scheduled commercial banks, excluding Regional Rural Banks (RRBs), are affected. RRBs were not required to submit this quarterly report as per the original circular.