Context: Recently, 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

• Ability to make informed decisions using specific sets of data

• Complete visibility from start to finish on a single project

• More time to focus on providing cost-effective solutions

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.