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RBI to put in place a “PRISM” to strengthen compliance by lenders

  • Posted By
    10Pointer
  • Categories
    Economy
  • Published
    20th Aug, 2021

The Reserve Bank of India (RBI) is planning to put in place a Platform for Regulated Entities for Integrated Supervision and Monitoring (PRISM).

Context

The Reserve Bank of India (RBI) is planning to put in place a Platform for Regulated Entities for Integrated Supervision and Monitoring (PRISM).

What is PRISM?

  • PRISM is a web-based end-to-end workflow automation system, to strengthen compliance by supervised entities (SEs).
  • PRISM will have various functionalities (inspection; compliance; incident functionality for cyber security; complaints; and returns functionalities), with built-in remediation workflows, time tracking, notifications and alerts, management information system (MIS) reports and dashboards.

Entities in India regulated by RBI

  • RBI regulates and supervises various entities in India. 
  • Entities regulated by the RBI include banks, All India Financial Institutions, NBFCs, and all payment system providers.

RBI’s annual report (2020-21) on supervisory framework

  • In its latest annual report (2020-21), RBI said it has been working towards strengthening the supervisory framework for both banking and non-banking sectors.
  • During the year, initiatives were taken towards- 
    1. integration of supervisory functions meant for different supervised entities
    2. specialisation and reinforcement of supervision through both vertical and horizontal risk assessments
    3. setting up a dedicated College of Supervisors for capacity development
    4. harnessing SupTech (supervisory technology)

Verifying, please be patient.

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