Reserve Bank of India (RBI) Governor Shaktikanta Das has launched a new initiative called DAKSH, the central bank’s advanced supervisory monitoring system which is to bank on supervisory powers more vigorous here on Thursday.

The Central Bank has been taking various initiatives in strengthening supervision among other initiatives including the adaption of the latest data and analytical tools as well as leveraging technology for implementing more efficient and automated work processes.


Reserve Bank of India launches application DAKSH 

Advanced Supervisory monitoring system DAKSH is competent and efficient  and reflects the underlying capabilities of the application.

DAKSH is a web-based end-to-end workflow application through which the central bank monitors compliance requirements in a more concentrated manner.

The application objective is to further improve the adherence culture in supervised entities like Banks, Non-Banking Financial Companies and others.

The SupTech application will also authorise seamless communication, cyber incident reporting and analysis, inspection planning and execution, provisions of various Information Management Reports (MIS) and others through a platform which allows anywhere anytime secure access, according to RBI.

Internal Ombudsman by April 1, 2023.

RBI Governor Shaktikanta Das also directs the Credit Information Companies to appoint an Internal Ombudsman by April 1 2023.

Earlier on August 5, as part of Developmental and Regulatory Policies, RBI had called for bringing credit information companies under the internal ombudsman framework to reinforce and ameliorate the planning of the internal grievance redressal mechanism.

Source – Live Mint (file)

RBI in the exercise of powers granted by sub-section (1) section 11 of the Credit Information Companies Regulation Act 2005, is satisfied that it is necessary for the public interest to do so.

 The Central Bank also directs all Credit Information Companies (CICs) holding a Certificate of Registration under sub-section (2) of section 5 of the act to appoint an Internal Ombudsman at the apex of their internal grievance redress mechanism by April 1 2023, According to RBI.

Implementation of Internal Ombudsman

Among other things, the direction also covers the appointments, tenure, roles and responsibilities, oversight mechanism for the Internal Ombudsman, procedural guidelines and others.

Under the mechanism, all complaints that are partly or wholly rejected by CICs will be evaluated by an Internal Ombudsman before the final decision of the CIC is forwarded to the complainant.

Source – TNIE (file)

Any complaints from the general public directly are not taken into consideration by the Internal Ombudsman.

The Implementation of the Internal Ombudsman mechanism is monitored by the CICs internal audit system apart from the regulatory supervision by the Central Bank.

Internal Ombudsman eligibility

The Internal Ombudsman shall be either the serving officer or retired officer not below the rank of deputy general manager or equivalent in any financial sector regulatory body, a non-banking financial company or a credit information company. 

Besides officers with the necessary skills and experience of at least seven years in banking, non-banking finance, financial sector regulation or supervision, credit information or consumer protection, according to RBI.

The appointment of IO will be for a fixed term of not less than three years, but not executing five years.

Source – Vajiram (file)

The IO cannot be removed before the completion of the contracted term without the RBI’s direct approval.

In case a vacancy arises on account of reasons beyond control, the CIC shall appoint a new IO, within three months from the date of the vacant arising.

The Internal Ombudsman shall report administratively to the Chief Executive Officer or Managing Director and functionally to the board.

The Internal Ombudsman shall not represent in the legal cases of Non Banking Fincancial Corporation before any court or authority.

The person appointed as the Internal Ombudsman shall not be above the age of 70 years at any point of time during tenure as IO.


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