RBI to use XBRL for Basel II
The Reserve Bank of India (RBI) will launch the Basel II reporting system using an advanced tool, eXtensible Business Reporting Language (XBRL), through the existing online returns filing system (ORFS).
India is probably the first among developing countries to introduce XBRL standard in its reporting system. The system also makes use of latest technology tools, some of which are already built into its ORFS.
XBRL is an electronic format for communication of business and financial data. The standardisation in-built in the XBRL documents provides significant benefits in the preparation, analysis and communication of business information.
ORFS also removes submission of multiple copies of the same return to various departments of the Reserve Bank of India, thus simplifying the data reporting process both for banks and the RBI.
This open standard offers cost savings, greater efficiency and improved accuracy and reliability to those involved in supplying or using financial data, according to a statement.
XBRL enhances the usability and transparency of financial information reported under existing accounting standards, simplifies disclosure, and allows users to communicate financial information more readily and accurately.
The central bank introduced the system for a few returns, such as, Section 42(2) Form A return of the RBI Act, with the objective of eliminating the need for paper based data submission.
ORFS also removes submission of multiple copies of the same return to various departments of the RBI, thus simplifying the data reporting process both for banks and for the apex bank.
Some scheduled commercial banks are implementing the new capital adequacy framework as per the RBI guidelines.
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