RBI releases its IT Vision Document for 2011-17

The Reserve Bank of India has today, placed on its website, the Report of the High Level Committee (HLC) on the IT Vision of Reserve Bank of India 2011-2017 (www.rbi.org.in/scripts/PublicationReportDetails.aspx?UrlPage=&ID=630) . The HLC report includes the IT Vision document for 2011-17 (www.rbi.org.in/scripts/PublicationVisionDocuments.aspx?ID=629) .

Main recommendations in the IT Vision document 2011-17

Focus for RBI

• Transforming itself into an information intensive knowledge organisation
• Harnessing human resource potential, migration to enterprise architecture for IT systems
• Adopting appropriate business process re-engineering
• Conforming to internationally accepted standards and usage of business intelligence from data warehouse for optimal Management Information Systems (MIS) with effective Decision Support Systems (DSS)
• Improving IT governance, effective project management, evolving well defined information policies as well as information security frameworks, better vendor management and outsourcing practices
• Reviewing of IT processes for better alignment between business objectives and IT.

Focus for Banks

The Vision Document sets priorities for commercial banks to move forward from their core banking solutions to enhanced use of IT in areas like MIS, regulatory reporting, overall risk management, financial inclusion and customer relationship management. It also dwells on possible operational risks arising out of adopting technology in the banking sector which could affect financial stability and emphasises the need for internal controls, risk mitigation systems, fraud detection / prevention and business continuity plans.

Although banks have deployed technology for transaction processing, analytical processing by banks is still in a nascent stage. The Report urges banks to work towards reaping benefits of technology in terms of cost reduction of small value transactions, improved customer services and effective flow of information within the banks and to the regulator.

The Reserve Bank will begin implementing the recommendations of the HLC shortly.

Background

The Reserve Bank has played a pivotal role in this process of transformation of the financial sector with the use of IT.  As the central bank, it has also strived to create a conducive environment for promoting technological adoption encompassing the financial sector.  Since IT has evolved over the years it is important that the financial sector too reviews the developments in this area and adapt itself to them.

Over a period of 15 years, DIT has satisfactorily fulfilled most of the objectives set to it at the time of formation. It has been instrumental in designing, developing and implementing IT-based systems, which have helped in the discharge of various functions of the Reserve Bank. As the developments in IT have a bearing on the role, functions and organisation of DIT, it is necessary to review its objectives.

To steer the financial sector to achieve the desired technological goals, the Reserve Bank has brought out two vision documents encompassing the periods 2005-08 and 2008-10.  As the tenure of the previous IT vision document was 2008-10, it was incumbent upon the department to prepare the next version of the vision document for the period 2011-17.

Against this background, the Governor constituted a High Level Committee (Chairman: Dr K C Chakrabarty, Deputy Governor, Reserve Bank of India) to prepare the IT Vision for 2011-17.  The terms of reference for the Committee were:

1. Review of the contribution of DIT in establishment of IT infrastructure in the Reserve Bank and banking sector over the period of fifteen years;
2. Preparation of Information Technology Vision Document for the period 2011-17, taking into account requirements and expectations of banking system in general and Reserve Bank in particular;
3. Keeping in view the IT Vision Document, redefining the role, functions and organisation of DIT;
4. Specifying the role of the department in meeting the information needs of the Reserve Bank and the society at large

The report of the Committee discusses the context in which the IT Vision Document has been prepared and gives strategy for achieving the goals set in the document. It also delineates the review of the contribution of Department of Information Technology (DIT) in establishment of IT infrastructure in the Reserve Bank and the banking sector over 15 years. Further it discusses the information needs of the Reserve Bank and the society and finally it redefines the role, responsibilities and organisation of DIT.

Alpana Killawala
Chief General Manager

Press Release : 2010-2011/1241