RBI launches advanced supervisory monitoring system DAKSH

The Reserve Bank of India has launched a new ‘SupTech’ initiative DAKSH – the bank’s Advanced Supervisory Monitoring System.

About DAKSH:

DAKSH is a web-based end-to-end workflow application.
Its literal meaning is ‘efficient’ & ‘competent’, reflecting the underlying capabilities of the application.
Using this application, the RBI can monitor compliance requirements in a more focused manner.
This will improve the compliance culture in Supervised Entities (SEs) like Banks, NBFCs, etc.
It will make the supervisory processes more robust.
The application will enable seamless communication, inspection planning, and execution, cyber incident reporting, and analysis, provision of various MIS reports, etc.

End-to-end workflow application:

An end-to-end field service management system is a term for software that provides end-to-end solutions for processes from the beginning of a workflow, right until the very end.
It encapsulates everything from the preparation stages right through to the post-launch of the application.
This eliminates any unnecessary steps in the end-to-end process and, in turn, enhances the efficiency of a system.

Advantages:

Financial Supervision:

The Reserve Bank of India performs this function under the guidance of the Board for Financial Supervision (BFS).
The Board was constituted in November 1994 as a committee of the Central Board of Directors of the Reserve Bank of India.
The primary objective of BFS is to undertake consolidated supervision of the financial sector comprising commercial banks, financial institutions, and non-banking finance companies.

The Board Constitution:

The Board is constituted by co-opting four Directors from the Central Board as members for a term of two years and is chaired by the Governor.
The Deputy Governors of the Reserve Bank are ex-officio members.
One Deputy Governor, usually, the Deputy Governor in charge of banking regulation and supervision, is nominated as the Vice-Chairman of the Board.