Module: | MODULE B: RISK MANAGEMENT
Q451: Consider the following statements regarding the regulatory reporting of liquidity risk under the Reserve Bank of India framework:
1. The Reserve Bank of India mandates that the Liquidity Coverage Ratio must be calculated internally on a daily basis, but formal regulatory reporting via the Centralised Information Management System is conducted monthly.
2. The adoption of the XBRL reporting framework legally exempts commercial banks from maintaining an internal Management Information System for daily tracking.
3. Standardized liquidity returns, such as the Structural Liquidity Statement, must be submitted accurately through the modernized Centralised Information Management System architecture.
Which of the statements given above is/are correct?
2. The adoption of the XBRL reporting framework legally exempts commercial banks from maintaining an internal Management Information System for daily tracking.
3. Standardized liquidity returns, such as the Structural Liquidity Statement, must be submitted accurately through the modernized Centralised Information Management System architecture.
Which of the statements given above is/are correct?
✅ Correct Answer: C
The correct answer is C. Statement 1 is correct: Under RBI guidelines, while the Liquidity Coverage Ratio (LCR) must be actively tracked and calculated internally by the bank on a daily basis to manage immediate risk, the formal regulatory submission of this LCR data to the RBI via the Centralised Information Management System (CIMS) is executed on a monthly frequency.
Statement 2 is incorrect: The adoption of the eXtensible Business Reporting Language (XBRL) format is purely for standardized external regulatory reporting.
It does absolutely nothing to exempt a bank from its mandatory requirement to maintain a highly granular, internal Management Information System (MIS) for daily ALCO operations.
Statement 3 is correct: The RBI has overhauled its data collection infrastructure, replacing older portals with the advanced CIMS architecture.
All major standardized liquidity returns, notably including the BLR-1 (Structural Liquidity Statement), must now be accurately compiled and submitted through this modernized CIMS portal.
Statement 2 is incorrect: The adoption of the eXtensible Business Reporting Language (XBRL) format is purely for standardized external regulatory reporting.
It does absolutely nothing to exempt a bank from its mandatory requirement to maintain a highly granular, internal Management Information System (MIS) for daily ALCO operations.
Statement 3 is correct: The RBI has overhauled its data collection infrastructure, replacing older portals with the advanced CIMS architecture.
All major standardized liquidity returns, notably including the BLR-1 (Structural Liquidity Statement), must now be accurately compiled and submitted through this modernized CIMS portal.