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1 XBRL : RBI Initiative Dr. A S Ramasastri Chief General Manager Department of Information Technology Reserve Bank of India 2 Our Journey . . . • First Three Steps • The Basel II Path • Future Roadmap 3 First Three Steps 4 The First Step (2001-04) • About 20 departments of Reserve Bank of India receive data at about 20 locations from about 200 commercial banks with about 70000 branches • Templates for reporting, called returns, which are around 250 as on date • Varying degrees of technology levels across banks • Attempts to rationalize the returns and to streamline multiple modes of data submission resulted in the origin of Online Return Filing System (ORFS) 5 Step Two (2004-07) • An important fortnightly return called Form A has been brought under ORFS • It has been designed and developed using XML tags – to be in readiness for adopting XBRL • Based on the experience, the system has been extended to another 50 returns • To standardize the data elements across returns and to be in line with international practices, XBRL was considered 6 The Big Leap (2007-09) • The Governor formed a High Level Steering Committee with the Deputy Governor as Chairperson to implement XBRL-based data reporting by banks • After a pilot study and feasibility analysis, the Committee mandated implementation of the newly introduced Basel II reporting system under XBRL • Basel II implementation is a simultaneous journey, going parallel 7 The Basel II Path 8 Approach • High Level Steering Committee • Involvement of banks • Interaction with international institutions – Europe, Japan, Australia • Learning from best practices in other central banks – Bank of Spain • Working closely with external consultants • Moving the other stakeholders in India 9 Basel II Reporting As directed by the High Level Steering Committee, the Capital Adequacy Return (RCA 2), based on the Basel II norms has been taken up first A 2- stage approach An Excel Based Report preparation Tool A web portal for Submission of Returns by the Banks Viewing Bank Returns and MIS Reports by RBI A Dimensional XBRL Taxonomy sits on top of both these applications 10 System Overview and Dataflow 11 RCA 2 – Taxonomy Overview • Taxonomy tailored to Basel II Reporting Requirements • XBRL 2.1 and Dimensional Specification Compliant • Taxonomy Architecture along COREP lines • Multi dimensional in nature and template based information capture 12 13 Template Based Data Capture Modules Templates Capital requirements 2 Credit risk exposure 9 Market risk exposure 4 Operational risk exposure 1 14 Future Roadmap 15 Implementation Strategy • • • • Phased approach In Phase I, Basel II reporting implemented International seminar along with launch Sec 42 Return and a few other returns under ORFS are brought to XBRL standards • Taxonomies for annual accounts and quarterly results for banking developed 16 Taxonomy Development • Institute of Chartered Accountants of India (ICAI) has been working towards – Formation of XBRL-India jurisdiction – Development of Taxonomies • Taxonomies for Commercial & Industrial (C&I) developed – yet to be implemented • Banking taxonomies developed – as extensions to C&I • RBI and ICAI are working closely 17 ICAI Taxonomy Structure • Industry-based classification – Commercial and Industrial companies – Banking companies – Non-Banking Financial companies • Core Schema – Exhaustive list of all element declarations – Common elements defined once • Distinct extended links for each industry 18 Approach • Designing general banking taxonomy in accordance with the C&I taxonomy – Based on IFRS 2006 – No dimensions • RBI can use the banking taxonomy and extend it to include dimensional structure – FINREP structure 19 Target • Based on IFRS 2006 – – – – • Banking specific tags have been defined additionally in the core schema Separate extended links for the bank reporting appended to existing taxonomy Basic structure of financial statements and their details, both included in the same extended link (unlike C&I) No dimensions have been defined, instead extended links have been used Implement the system for March 2010 reporting 20 The Best Way - Banks • Banks submit financial statements to RBI, Stock Exchanges, Ministry of Corporate Affairs and other agencies • XBRL Filing should help banks to do a single filing and relevant reports generated by respective agencies, the way they want • ICAI to co-ordinate with all agencies to ensure such an implementation 21 The Best Way – C&I • Once C&I taxonomies are implemented, MCA, SEBI, Stock Exchanges and other agencies should retrieve their reports from a single repository – ICAI to work for it • Banks can then get the information from that single repository for their analysis of financial statements of companies • Rating agencies can also do the same • Individuals should also have access to it 22 XBRL info-way • From Oct 14, 2009 RBI is sharing the banking taxonomies with the public through its website (under For Bankers) • RBI is also sharing information relating to XBRL concepts, useful links and important events through this webpage • It is a step towards meeting international standards in XBRL adoption 23 Thank You [email protected]