What changed
RBI reiterated its Monetary Policy Statement 2012-13, emphasizing that banks must implement IT and IS governance structures. It also set a deadline of March 2013 for banks to fully deploy automated data flow systems for submitting returns to RBI.
What it means for you
Banks must prioritize board-level attention on IT governance, information security, and business continuity. This move aims to align IT with business, reduce operational risks, and ensure timely, error-free regulatory reporting. Non-compliance could impact financial stability and regulatory standing.
What you must do
- Adopt IT and IS governance frameworks as per IDRBT's reference manual.
- Ensure board-level oversight of IT governance, information security, and business continuity.
- Develop and deploy automated data flow systems to generate all RBI returns by March 2013.
- Acknowledge receipt of this circular to RBI.
Who it affects
All scheduled commercial banks (excluding RRBs), Board of Directors and senior management, IT and information security teams, Regulatory reporting departments
What is the deadline for implementing automated data flow?
Banks must implement suitable solutions to generate all returns to RBI without manual intervention by end-March 2013.
Which document can serve as a reference for IT governance?
The IDRBT document on 'Organizational Structure for IT in the Indian Banking Sector' is recommended as a reference manual.
Does this apply to Regional Rural Banks (RRBs)?
No, this circular is addressed to all scheduled commercial banks excluding RRBs.