Urban Cooperative Banks Current Affairs - 2019

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What is RBI’s Complaint Management System?

The Reserve Bank of India (RBI) has launched Complaint Management System (CMS), on its website for facilitating RBI’s grievance redressal process.

About CMS

It is a software application launched by RBI for lodging complaints against any regulated entity with public interface such as commercial banks, urban cooperative banks (UCBs), Non-Banking Financial Companies (NBFCs).

Objective: To facilitate RBI’s grievance redressal process and also to improve customer experience in timely redressal of grievances.

Need: For maintaining trust and sustaining the confidence of consumers in the banking system and other financial service providers (FSPs), prompt and effective grievance redressal mechanism together with customers empowerment through education is must.

Features:

Keeping convenience of customers in mind, RBI has designed CMS in a way to enable online filing of complaints.

Targeted Solution: Once the complaint is registered it would be directed to appropriate office of Ombudsman or Regional Office of RBI.

Transparent Procedure: The application has the feature of keeping complainants fully informed via auto-generated acknowledgements and enabling them to track status of their complaints as well as to file appeals online against the decisions of Ombudsmen, where applicable. Thus help improving transparency in system.

Tracking: The application is also provided with various dashboards which will help RBI to effectively track progress in redressal of complaints.

Feedback: Complainants can also voluntarily share feedback on their experience in obtaining redressal thus helping the service provider to further improvise its services.

Way Ahead: CMS will be accessible on desktop and on mobile devices. In future, RBI also plans to introduce a dedicated Interactive Voice Response (IVR) system for tracking status of complaints.

RBI can leverage the data from CMS for analytics purpose, which can then be used for regulatory and supervisory interventions, if required.

Month: Categories: Business, Economy & Banking

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Implementation of Indian Accounting Standards deferred by RBI

The Reserve Bank of India (RBI) has deferred the implementation of new accounting rules, Indian Accounting Standards (Ind AS) for banks till further notice. This is the second extension provided by the RBI. Earlier in April 2018, RBI had postponed the implementation of Ind AS by the banks by one year.

RBI has reasoned that since the legislative amendments recommended by the RBI are under consideration of the government it has been decided to defer the implementation of Ind AS till further notice.

Indian Accounting Standards

Indian Accounting Standards (Ind AS) is a set of accounting norms developed by Indian authorities, which converge with the International Financial Reporting Standards (IFRS). Urban Cooperative Banks (UCBs) and Regional Rural Banks (RRBs) shall not be required to apply Ind AS and shall continue to comply with the existing Accounting Standards.

This delay in the implementation of Ind AS will give banks more time to prepare for the expected credit-loss model. Fitch Ratings estimated that India’s state-run lenders would have had to increase provisions by as much as 1.1 trillion rupees ($16 billion) in the fiscal first quarter ending June 30 if the rules had gone ahead. This huge capital requirement would have forced public sector lenders to raise substantial amounts of extra capital, beyond the estimated 1.9 trillion rupee infusion already committed by the government.

Month: Categories: Business, Economy & BankingUPSC

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