1

A PROJECT REPORT
ON
MANAGEMENT INFORMATION SYSTEM (MIS)
IN RESERVE BANK OF INDIA

SUBMITTED TO UNIVERSITY OF MUMBAI IN

PARTIAL FULFILLMENT
FOR THE REQUIREMENT OF THE DEGREE OF
M.COM-I
(BUSINESS MANAGEMENT)
SEMESTER 1
UNDER GUIDANCE OF
PROF.MR. S.N.CHITALE

VPMS K.G. JOSHI COLLEGE OF ARTS

N.G. BEDEKAR COLLEGE OF COMMERCE THANE
ACADEMIC YEAR: 2014-15

ADITI H. HANDE
ROLL NO. 14

DECLARARTION
I Aditi Hande studying in M.COM-I (Business Management) hereby
declares that I have done a project on Management Information System
(MIS) In Reserve Bank Of India As required by the university rules, I
state that the work presented in this thesis is original in nature and to the
best my knowledge, has not been submitted so far to any other
university.
Whenever references have been made to the work of others, it is clearly
indicated in the sources of information in references.

(Aditi Hande)
Place: Thane
Date:

ACKNOWLEDGEMENT
It gives me great pleasure to declare that my project on Management
Information System In RBI have been prepared purely from the point of
view of students requirements.
This project covers all the information pertaining to MIS. I had tried my
best to write project in simple and lucid manner. I have tried to avoid
unnecessary discussions and details. At the same time it provides all the
necessary information. I feel that it would be of immense help to the
students as well as all others referring in updating their knowledge.
I am indebted to our principal Dr. Mrs. Shakuntala A. Singh Madam for
giving us such an awesome opportunity. I am also thankful to our coordinator Mr. D.M. Murdeshwar Sir and also librarian and my
colleagues for their valuable support, co-operation and encouragement in
completing my project.
Special thanks to Prof. Mr. S.N.Chitale my internal guide for this project
for giving me expert guidance, full support and encouragement in
completing my project successfully.
I take this opportunity to thanks my parents for giving guidance and for
their patience and understanding me while I am busy with my project
work.

EXECUTIVE SUMMARY
Management information Systems (MIS) sometimes referred to as Information Management
and Systems are the discipline covering the application of people, technologies, and procedures
collectively called information systems to solving business problems. Management
Information Systems are distinct from regular information systems in that they are used to
analyze other information systems applied in operational activities in the organization.
Academically, the term is commonly used to refer to the group of information management
methods tied to the automation or support of human decision making, e.g. Decision Support
Systems, Expert systems, and Executive information systems. The terms MIS and
information system are often confused. Information systems include systems that are not
intended for decision making. MIS is sometimes referred to, in a restrictive sense, as
information technology management. That area of study should not be confused with
computer science . IT service management is a practitioner-focused discipline. MIS has also
some differences with Enterprise Resource Planning (ERP) as ERP incorporates elements that
are not necessarily focused on decision support

INDEX
Sr.No
Chapter1

Chapter2

Chapter3

Topic
Management Information System
1.1 Introduction
1.2 Origin And Evolution
1.3 MIS And Small Business
1.4 Types & Terminology
1.5 Objectives Of MIS
1.6 Characteristics Of MIS
1.7 Advantages Of MIS
1.8 Steps In MIS
1.9 Enterprise Application
MIS In Banking
2.1 Introduction
2.2 Relevance Of MIS In Banking In India
2.3 Need For Building MIS
2.4 Application Of Data Mining & Data
Warehousing In Banks
MIS In RBI
3.1 Reserve Bank Of India
3.2 Management Information System
3.3 Data Model For Information System
3.4 Meta Data Directory
3.5 Technology And Design
3.6 Organization Structure For Information
Management
Conclusion
Bibliography

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18
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21
22-26
22
23
24
25
27-35
27
29
31
32
33
34
36
37

CHAPTER1: MANAGEMENT INFORMATION SYSTEM (MIS)

INTRODUCTION

A management information system (MIS) provides information that organizations

require to manage themselves efficiently and effectively. Management information
systems are typically computer systems used for managing. The six primary
components of an MIS are: 1.Hardware 2.Software 3.Firmware 4.Data (information
for decision making) 5. Procedures (design, development and documentation) and
6. People (individuals, groups or organizations).
Management information systems are distinct from other information systems in
that they are used to analyze and facilitate strategic and operational activities.
Academically, the term is commonly used to refer to the study of how individuals,
groups, and organizations evaluate, design, implement, manage, and utilize
systems to generate information to improve efficiency and effectiveness of
decision making, including systems termed decision support systems, expert
systems, and executive information systems. Many business schools (or colleges of
business administration within universities) have an MIS department, alongside
departments of accounting, finance, management, marketing, and may award
degrees (at undergrad, masters, and PhD levels) in MIS.
A management information system (MIS) is a computerized database of financial
information organized and programmed in such a way that it produces regular

reports on operations for every level of management in a company. It is usually

also possible to obtain special reports from the system easily. The main purpose of
the MIS is to give managers feedback about their own performance top
management can monitor the company as a whole. Information displayed by the
MIS typically shows "actual" data over against "planned" results and results from a
year before; thus it measures progress against goals. The MIS receives data from
company units and functions. Some of the data are collected automatically from
computer-linked check-out counters; others are keyed in at periodic intervals.
Routine reports are preprogrammed and run at intervals or on demand while others
are obtained using built-in query languages display functions built into the system
are used by managers to check on status at desk-side computers connected to the
MIS by networks. Many sophisticated systems also monitor and display the
performance of the company's stock.

DEFINITION AND MEANING

An organized approach to the study of the information needs of an organization's

management at every level in making operational, tactical, and strategic decisions.
Its objective is to design and implement procedures, processes, and routines that
provide suitably detailed reports in an accurate, consistent, and timely manner.
In a management information system, modern, computerized systems continuously
gather relevant data, both from inside and outside an organization. This data is then
processed, integrated, and stored in a centralized database (or data warehouse)
where it is constantly updated and made available to all who have the authority to
access it, in a form that suits their purpose.

ORIGINS AND EVOLUTION

The MIS represents the electronic automation of several different kinds of

counting, tallying, record-keeping, and accounting techniques of which the by far
oldest, of course, was the ledger on which the business owner kept track of his or
her business. Automation emerged in the 1880s in the form of tabulating cards
which could be sorted and counted. These were the punch-cards still remembered
by many: they captured elements of information keyed in on punch-card machines;
the cards were then processed by other machines some of which could print out
results of tallies. Each card was the equivalent of what today would be called a
database record, with different areas on the card treated as fields. World-famous
IBM had its start in 1911; it was then called Computing-Tabulating-Recording
Company. Before IBM there was C-T-R. Punch cards were used to keep time
records and to record weights at scales. The U.S. Census used such cards to record
and to manipulate its data as well. When the first computers emerged after World
War II punch-card systems were used both as their front end (feeding them data
and programs) and as their output (computers cut cards and other machines printed
from these). Card systems did not entirely disappear until the 1970s. They were
ultimately replaced by magnetic storage media (tape and disks). Computers using
such storage media speeded up tallying; the computer introduced calculating
functions. MIS developed as the most crucial accounting functions became
computerized.
Waves of innovation spread the fundamental virtues of coherent information
systems across all corporate functions and to all sizes of businesses in the 1970s,
80s, and 90s. Within companies major functional areas developed their own MIS
capabilities; often these were not yet connected: engineering, manufacturing, and
inventory systems developed side by side sometimes running on specialized
hardware. Personal computers ("micros," PCs) appeared in the 70s and spread

10

widely in the 80s. Some of these were used as free-standing "seeds" of MIS
systems serving sales, marketing, and personnel systems, with summarized data
from them transferred to the "mainframe." In the 1980s networked PCs appeared
and developed into powerful systems in their own right in the 1990s in many
companies displacing midsized and small computers. Equipped with powerful
database engines, such networks were in turn organized for MIS purposes.
Simultaneously, in the 90s, the World Wide Web came of age, morphed into the
Internet with a visual interface, connecting all sorts of systems to one another.
Midway through the first decade of the 21st century the narrowly conceived idea of
the MIS has become somewhat fuzzy. Management information systems, of
course, are still doing their jobs, but their function is now one among many others
that feed information to people in business to help them manage. Systems are
available for computer assisted design and manufacturing (CAD-CAM); computers
supervise industrial processes in power, chemicals, petrochemicals, pipelines,
transport systems, etc. Systems manage and transfer money worldwide and
communicate worldwide. Virtually all major administrative functions are supported
by automated system. Many people now file their taxes over the Internet and have
their refunds credited (or money owning deducted) from bank accounts
automatically. MIS was thus the first major system of the Information Age. At
present the initials IT are coming into universal use. "Information Technology" is
now the category to designate any and all software-hardware-communications
structures that today work like a virtual nervous system of society at all levels.

11

MIS AND SMALL BUSINESS

If MIS is defined as a computer-based coherent arrangement of information aiding
the management function, a small business running even a single computer
appropriately equipped and connected is operating a management information
system. The term used to be restricted to large systems running on mainframes, but
that dated concept is no longer meaningful. A medical practice with a single doctor
running software for billing customers, scheduling appointments, connected by the
Internet to a network of insurance companies, cross-linked to accounting software
capable of cutting checks is de facto an MIS. In the same vein a small
manufacturer's rep organization with three principals on the road and an
administrative manager at the home office has an MIS system, that system
becomes the link between all the parts. It can link to the inventory systems, handle
accounting, and serves as the base of communications with each rep, each one
carrying a laptop. Virtually all small businesses engaged in consulting, marketing,
sales, research, communications, and other service industries have large computer
networks on which they deploy substantial databases. MIS has come of age and
has become an integral part of small business.
But while virtually every company now uses computers, not all have as yet
undertaken the kind of integration described above. To take the last step, however,
has become much easierprovided that good reasons are present for doing so. The
motivation for organizing information better usually comes from disorder
ordering again what has already been ordered, and sitting in boxes somewhere,
because the company controls its inventory poorly. Motivation may arise also from
hearing about others who are exploiting some resource, like a customer list, while
the owner's own list is in sixteen pieces all over the place. There are sometimes

12

also reasons for not automating things too much: in modern times a business can
grind to a dead halt because "the network is down."
Upgrading the information system usually begins by identifying some kind of a
problem and then seeking a solution. In that process a knowledgeable resourceperson brought in from the outside can provide a great deal of help. If the problem
is over-stocking, for example, solving that problem will often become the starting
point for a new information system touching on many other aspects of the
business. The first question a consultant is likely to ask will concern how things are
managed now. In the description of the process, the discovery of potential solutions
will begin. It is usually a good idea to call on two or three service firms for initial
consultations; these rarely cost any money. Once the owner feels comfortable with
one of these vendors, the process can then be deepened.

13

TYPES AND TERMINOLOGY

The terms Management Information System (MIS), information system, Enterprise
Resource Planning (ERP), and information technology management are often
confused. Information systems and MIS are broader categories that include ERP.
Information technology management concerns the operation and organization of
information technology resources independent of their purpose.
Most management information systems specialize in particular commercial and
industrial sectors, aspects of the enterprise, or management substructure.
Management information systems, produce fixed, regularly scheduled
reports based on data extracted and summarized from the firms underlying
transaction processing systems to middle and operational level managers to
identify and inform structured and semi-structured decision problems.
Decision Support Systems (DSS) are computer program applications used
by middle and higher management to compile information from a wide
range of sources to support problem solving and decision making. A DSS is
used mostly for semi-structured and unstructured decision problems.
Executive Information Systems (EIS) is a reporting tool that provides quick
access to summarized reports coming from all company levels and
departments such as accounting, human resources and operations.
Marketing Information Systems are Management Information Systems
designed specifically for managing the marketing aspects of the business.

14

Office Automation Systems (OAS) support communication and productivity

in the enterprise by automating workflow and eliminating bottlenecks. OAS
may be implemented at any and all levels of management.
School

Information

Management

Systems

(SIMS)

cover

school

administration, and often including teaching and learning materials.

Enterprise Resource Planning facilitates the flow of information between
all business functions inside the boundaries of the organization and manage
the connections to outside stakeholders.

15

OBJECTIVES OF MIS
Goals of an MIS are to implement the organizational structure and dynamics of the
enterprise for the purpose of managing the organization in a better way and
capturing the potential of the information system for competitive advantage.
Following are the basic objectives of an MIS:
Capturing Data: capturing contextual data, or operational information that
will contribute in decision making from various internal and external sources
of organization
Processing Data: the captured data is processed into information needed for
planning, organizing, coordinating, directing and controlling functionalities
at strategic, tactical and operational level. Processing data means:
o making calculations with the data
o sorting data
o classifying data and
o summarizing data
Information Storage: information or processed data need to be stored for
future use.
Information Retrieval: the system should be able to retrieve this
information from the storage as and when required by various users.

16

Information Propagation: information or the finished product of the MIS

should be circulated to its users periodically using the organizational
network.

CHARACTERISTICS OF MIS
The management information system has the following characteristics 1) System approach: MIS is based on the System approach. It is a step by step
approach to the study of system and its performance. Performance is made in the
light of the objective which has been constituted for that purpose.
2) Management oriented: Under MIS, necessary information is provided to each
manager at the right time, in right form and a relevant one, which is required by the
management by providing information in taking effective managerial decision.
3) Future oriented: MIS is designed and developed keeping in view the future
position of the business. Therefore, MIS should provide useful information on the
basis

of

projections

based

on

which

future

action

can

be

taken.

4) Integrated: MIS is designed in taking a comprehensive view or looking at the

complete picture of the interlocking sub-systems that operate within the company.
It considers all aspects of production, marketing, accounting, financing,
management.

17

5) Common-data followed: MIS deals with the common data that are available in
the business. Because, MIS provides data and information for taking effective
managerial decision, which must select the real picture of the business.

6) Long term planning: MIS is prepared for long term planning of the business.
So, the designer should avoid the outdated data and information in designing and
developing time of MIS. The designer should consider the present situation and
future

trend

of

the

business

activities,

when

MIS

is

designed.

7) Control database: Another important characteristic of MIS is that it always

based on centralised data and information. It is because of this fact that MIS is to
supply data and information in such a way so that the management can take its
important decision.

18

ADVANTAGES
The following are some of the benefits that can be attained using MIS.
Companies are able to identify their strengths and weaknesses due to the
presence of revenue reports, employees' performance record etc. Identifying
these aspects can help a company improve its business processes and
operations.
Giving an overall picture of the company.
Acting as a communication and planning tool.
The availability of customer data and feedback can help the company to
align its business processes according to the needs of its customers. The
effective management of customer data can help the company to perform
direct marketing and promotion activities.
MISs can help a company gain a competitive advantage. Competitive
advantage is a firms ability to do something better, faster, cheaper, or
uniquely, when compared with rival firms in the market.

19

STEPS OF MIS
Following

are

the

steps

of

Management

Information

System.

i) Collection of Data: The designing of MIS is based on the collection of data.

Generally, data are not collected independently for special purposes, but they are
collected for multiple uses; such as, data of inventory can be used by managers in
production, accounting and purchase department. After collection of data,
assembly is immensely important. Data should be assembled according to needs
and purposes of the management. There are mainly two sources of data and
information: Internal source and external source. The company should use both.
ii) Processing: In the second step, data should be processed in a systematic
manner. Processing of data implies editing of data, their classification and
summation. By the editing of data, correction and modification can be done and
classification should be done according to the need of organisation. Summation is
the process of grouping the data on the basis of similar nature as well as purpose.

20

iii) Storage and Retrieval: In this step of MIS different activities such as
indexing, coding, filing of data and information are done. As a result of this step,
the managers and directors of the company can easily use and operate the data and
information as per their requirement.

iv) Evaluation: It is an important step, where accuracy and relevance of data can
be determined. Determination of relevance of data is immensely important for
taking

effective

decision

at

each

level.

v) Dissemination: By this step relevent information is supplied in the proper form

at the right time. Information should be supplied according to the requirement of
the top management. So, it may be different for different companies and also may
be different -at different times of the same company,

21

ENTERPRISE APPLICATION
Enterprise systems also known as enterprise resource planning (ERP)
systems provide integrated software modules and a unified database that
personnel use to plan, manage, and control core business processes across
multiple locations. Modules of ERP systems may include finance,
accounting,

marketing,

human

resources,

production,

inventory

management, and distribution.

Supply chain management (SCM) systems enable more efficient
management of the supply chain by integrating the links in a supply chain.
This may include suppliers, manufacturers, wholesalers, retailers, and final
customers.
Customer relationship management (CRM) systems help businesses manage
relationships with potential and current customers and business partners
across marketing, sales, and service.
Knowledge management system (KMS) helps organizations facilitate the
collection, recording, organization, retrieval, and dissemination of

22

knowledge. This may include documents, accounting records, unrecorded

procedures, practices, and skills. Knowledge management (KM) as a system
covers the process of knowledge creation and acquisition from internal
processes and the external world. The collected knowledge is incorporated in
organizational policies and procedures, and then disseminated to the
stakeholders.

MIS IN BANKING
INTRODUCTION
The term Management Information System (MIS) is not new to the banking sector.
Since the early 80s, banks have been using this terminology to refer to the process
of generating various reports and analyses at the Corporate/Head offices for their
decision making for own use as well as for conveyance to authorities in charge of
regulation. Often, these reports are generated through computers and can be
generated at any point of time. However, the usage of the terms data warehousing
and data mining are relatively new. These terms have gained significance with the
growing sophistication of technology and the need for predictive analysis with
What if simulations. MIS in the present context of high availability of voluminous
data on electronic media at diverse locations and on diverse platforms, has become
more pertinent to banks decision-making process, thanks to the availability of new
tools of technology such as data warehousing, data mining. Data warehousing
which refers to collection of data from various sources (internal and external) and
placing them in a form suitable for further processing which will gain critical
importance in the presence of data mining which refers to the process of extracting

23

hidden information and generating several types of analytical reports which are
usually not available in the original transaction processing systems.

RELEVANCE OF MIS FOR BANKS IN INDIA

Banking being an information intensive industry, building a Management
Information System within a bank or an industry is a gigantic task. It is more so for
the public sector banks which have a wide network of bank branches spread all
over the country. It becomes all the more difficult due to prevalence of varying
degrees of computerisation. At present, banks generate MIS reports largely from
periodic paper reports/ statements submitted by the branches and regional/zonal
offices. Except for a few banks which have been using technology in a big way,
MIS reports are available with a substantial time lag. Reports so generated have
also a high margin of error due to data entry being done at various levels and the
likelihood of varying interpretations at different levels.
Though computerisation of bank branches has been going on at a good pace, MIS
requirements have not been fully addressed to. It is on account of the fact that most
of the Total Branch Comupterisation (TBC) software packages are transaction
processing oriented. They have been designed primarily for day-to-day operations
at the branch level and day-end balancing of books. There are only a few packages
used by a limited number of branches which can easily be interfaced with the

24

computer systems at Zonal/ Head Offices and have the capability to generate MIS
data. Banks have not implemented such packages partly because of the high costs
and partly because of the absence of any strategic plan to collate information at the
corporate level by using the TBC packages.

NEED FOR BUILDING MIS

The need for building MIS at the corporate level has increased considerably during
the last few years because of the following reasons :
Regulatory requirements indicated by the RBI for preparation of Off-site
Monitoring Surveillance (OSMOS) Reports on a regular basis in electronic
format.
Regulatory requirement of filing of statutory returns such as the one under
Section 42 of the Reserve Bank of India Act, 1934 for working out Cash
Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) obligations in
electronic format.
Asset Liability Management (ALM) guidelines for banks being implemented
by the RBI w.e.f April 1, 1999 with the stipulation that the banks should
capture 100 percent of their business through the ALM system by April1,
2000.
Need for timely submission of Balance Sheets and Profit & Loss Accounts.
Focus on transaction costing and a need for relating the service charges
levied on the customers to be based on cost of servicing.

25

Need for Inter-Branch Reconciliation of Accounts within a definite time

frame
Need to meet the stipulations made by the Central Vigilance Commission
(CVC) to computerise at least 70percent of banking business by January 1,
2001.
Need to undertake risk management strategies and for this purpose build up
appropriate sets of data and market intelligence reports.

APPLICATION OF DATA MINING AND DATA WARE HOUSING IN

BANKS
Data warehousing and data mining have following applications:
All transactions captured at the branch level would get consolidated at a
central location. Such a central location could be called the Data Warehouse
of the concerned bank. For this to happen, one of the requirements would be
to establish connectivity between the branches on the one hand and the Data
Warehouse platform on the other.
For banks with large number of branches, it may not be desirable to
consolidate the transaction details at one place only. It can be decentralised
by locating the services on regional basis. The regional Data marts as
developed can provide mutual back-up and could be linked to the central
Data Warehousing server so that for the purpose of MIS at the corporate
level, data can be accessed from all the regional Data marts.
By way of data mining techniques, data available at various computer
systems can be accessed and by a combination of techniques like
classification, clustering, segmentation, association rules, sequencing,
decision tree, various ALM reports such as Statement of Structural Liquidity,

26

Statement of Interest Rate Sensitivity etc. or accounting reports like Balance

Sheet and Profit & Loss Account can be generated instantaneously for any
desired period/date.

Significant cost benefits, time savings, productivity gains and process reengineering opportunities are associated with the use of data warehouse for
information processing. Data can easily be accessed and analysed without time
consuming manipulation and processing. Decisions can be made more quickly and
with confidence that the data are both time-relevant and accurate. Integrated
information can be also kept in categories that are meaningful to profitable
operation.
Trends can be analysed and predicted with the availability of historical data and
the data warehouse assures that everyone is using the same data at the same level
of extraction, which eliminates conflicting analytical results and arguments over
the source and quality of data used for analysis. In short, data warehouse enables
information processing to be done in a credible, efficient manner.

27

MIS IN RBI
RESERVE BANK OF INDIA

The Reserve Bank of India is India's Central Banking Institution, which controls
the Monetary Policy of the Indian Rupee. On 1 April 1935 during the British Rule
in accordance with the provisions of the Reserve Bank of India Act, 1934. The
original share capital was divided into shares of 100 each fully paid, which were
initially owned entirely by private shareholders. Following India's independence on
15 - August - 1947, the RBI was nationalised in the year of 1949.

28

The RBI plays an important part in the Development Strategy of the Government
of India. It is a member bank of the Asian Clearing Union. The general
superintendence and direction of the RBI is entrusted with the 20-member Central
Board of Directors: the Governor (Dr. Raghuram Rajan), 4 Deputy Governors, 1
Finance Ministry representatives, 10 government-nominated directors to represent
important elements from India's economy, and 4 directors to represent local boards
headquartered at Mumbai, Kolkata, Chennai and New Delhi. Each of these local
boards consists of 5 members who represent regional interests, and the interests of
co-operative and indigenous banks.
The bank is also active in promoting financial inclusion policy and is a leading
member of the Alliance for Financial Inclusion (AFI).
The Reserve Bank of India was founded on 1 April 1935 to respond to economic
troubles after the First World War. RBI was conceptualized as per the guidelines,
working style and outlook presented by Dr B. R. Ambedkar as written in his book
The Problem of the Rupee Its origin and its solution. in front of the Hilton
Young Commission.The bank was set up based on the recommendations of the
1926 Royal Commission on Indian Currency and Finance, also known as the
HiltonYoung Commission. The original choice for the seal of RBI was The East
India Company Double Mohur, with the sketch of the Lion and Palm Tree.
However it was decided to replace the lion with the tiger, the national animal of
India. The Preamble of the RBI describes its basic functions to regulate the issue of
bank notes, keep reserves to secure monetary stability in India, and generally to
operate the currency and credit system in the best interests of the country. The
Central Office of the RBI was established in Calcutta (now Kolkata), but was
moved to Bombay (now Mumbai) in 1937.

29

MANAGEMENT INFORMATION SYSTEM

The Reserve Bank of India (RBI), which performs multiple functions ranging from
monetary policy to regulation and supervision, requires a large variety of
information to effectively discharge its responsibilities. The present system of
collecting, managing and utilising information evolved over several years in
response to the emerging needs of the Reserve Bank and with the objective of
disseminating information as a public good. With increasing integration with the
global economy and the growing complexity of the economic structure, the
information needs have expanded considerably. Therefore, gaps are being
experienced in various domains of information required for policy formulation as
also in efficient management of information.
To address these concerns about data gaps and to place information management
on a more technologically mature footing, the Reserve Bank constituted a
Committee to comprehensively review the current system of data collection,
dissemination and management and to examine the feasibility of moving towards
granular, multi-purpose data collection and more integrated and structured data
production processes.

30

The terms of reference of the Committee were:

i.

To review the availability, coverage, frequency, timeliness and quality of the

existing data/surveys/information used for: (a) monetary policy, (b) macrofinancial policy and (c) supervision.

ii.

To review the recommendations of earlier Committees/Working Groups on

data gaps and information management in the Reserve Bank.

iii.

In the light of (i) and (ii) above, suggest changes in the process of receipt,
storage, access, management and dissemination of monetary, macrofinancial and supervisory data.

iv.

In order to achieve (iii) above, suggest necessary institutional and

technological changes within the Reserve Bank to make available consistent
data from a single source for all user groups as well as for management
decision-making.

v.

To suggest complementary technological and process changes at the level of

banks so that granular data are made available from the source system that
could ensure data integrity.

vi.

To consider any other related matters.

31

DATA MODEL FOR INFORMATION SYSTEM

The Committee noted that the existing data compilation systems give priority to
departmental information systems, which are the primary feeders of the
management information system. This has limited the scope for an enterprise-wide
data model to emerge. The Committee recommends that the Reserve Bank should
move to an overall high-level information model that is derived from the
information needs of the various arms of the Bank. The availability of sufficiently
mature technology solutions and experienced manpower in the Bank should ensure
that the high-level model can be translated into an information system that
provides necessary information to users as per their needs.
As a first step in this direction, the Committee noted that there is a need to define
the data required by the Reserve Bank in its entirety so that the regulated entities,
which submit the information, can also organise their systems in line with the
reporting requirements specified by the Bank. The Committee felt that for primary
data it would be optimal to dissolve the returns into data elements; these can be
organised into datasets that contain logically coherent data elements. For the

32

datasets, which are secondary in nature, the input data structure is to be taken as
available.
The Committee considered the possibility of getting all the information in granular
form. After considerable deliberation, it concluded that some data are relevant only
at the aggregate level. Thus, the focus should be on collecting relevant, coherent
and unduplicated data from banks. This will also reduce the reporting burden on
banks. The Committee, therefore, recommends three generic data collection
structures: (i) aggregated data, (ii) distributed aggregates, and (iii) granular data
depending on the relevance of data at different operational hierarchies.
META DATA DIRECTORY
An efficient and effective data management function in the Reserve Bank means
that the Bank should be in a position to know at any time point what data are being
collected from various constituencies at what intervals and in what form. The
Committee recommends that it will be useful to prepare a Data Element Directory
that lists data elements with their related attributes to be collected from various
constituencies.
A Data Dissemination Directory with details of variables, definitions, statistical
attributes and other time series attributes needs to be prepared and maintained as
part of the metadata directory. This will also facilitate dissemination of time series
data using the Statistical Data and Metadata Exchange (SDMX) standard. A Data
Channel Directory with details of data channels, data sources and mode of transfer
may need to be maintained for monitoring and follow-up.
The data element, data dissemination and data channel directories should be
maintained centrally and in a proper database format so that they can be accessed

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by data managers, data users and software developers. These directories will form
the backbone of data management processes such as collection, storage and
dissemination.

TECHNOLOGY AND DESIGN

Traditional constraints on capturing, transmitting, storing and processing large
amounts of data have now been overcome with technological progress. The
Reserve Bank can therefore afford to liberally collect and process large amounts of
micro and transactional data by setting up appropriate technological capabilities
and processes that, in turn, can generate a continuous flow of information for the
Banks regulatory, supervisory and policy-making purposes.
The design of the technical architecture proposed is based on the following
principles: simplicity, use of the existing infrastructure, scalability in terms of
increased number and volume of reporting, gradual adoption, feasibility and the
use of a layer of outsourced vendor personnel at various levels of statistics
processes to reduce the operational burden and system complexity.

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ORGANIZATION STRUCTURE FOR INFORMATION MANAGEMENT

The present organisation of information management in a decentralised manner is

not amenable to the implementation of uniform policies and standardisation of
systems for information in the Bank. There is a clear need to put in place an
appropriate governance structure for information management. This was also
recognised by the High-level Committee on IT Vision which recommended that the
Bank should identify and assign the role of Chief Information Officer (CIO) to a
senior official. The CIO would be responsible for managing the information assets

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of the organisation, including data, and implementing data governance and the
information governance framework.

The entire data requirement of the Reserve Bank should be managed centrally for
coherence, integrity, consistency and accountability. The responsibilities of the
information management unit should broadly be along the following lines:
Set up data governance policies
Maintain master data and data standards
Manage information resources (acquisition, storage, reports, dissemination)
with IT tools and platforms
Provide feedback to user departments on data quality issues
Implement data quality based on the validation rules provided by the
identified nodal business unit
Develop new modules as per user requirements
The manpower in the Information Management Unit should predominantly have
statistics and information technology (IT) as their core competency. The staff
associated with information management in regulatory, supervisory and research
departments may move to the IMU in a phased manner concurrently with the
transfer of data-related activity from these departments to the IMU. In addition,
there will be a need to post some officers in the unit who have knowledge of
economics and experience in regulation and banking supervision to ensure that the

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information needs of the Bank for all its functions are well understood and met on
a continued basis.

CONCLUSION
MIS differ from regular information systems because the primary objectives of
these systems are to analyze other systems dealing with the operational activities in
the organization. In this way, MIS is a subset of the overall planning and control
activities covering the application of humans, technologies, and procedures of the
organization. Within the field of scientific management, MIS is most of ten tailored
to the automation or support of human decision making. Management information
systems (MIS) make it possible for organizations to get the right information to the
right people at the right time by enhancing the interaction between the
organizations people, the data collected in its various IT systems, and the
procedures it uses. It brings together the raw data collected by the various business
areas of the organization, which, while useful for specific functions such as
accounting, does not provide, by itself, information that can be used to make
decisions. As organizations grow, MIS allows information to move between
functional areas and departments instantly, reducing the need for face-to-face
communications among employees, thus increasing the responsiveness of the
organization.

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BIBLIOGRAPHY
http://en.wikipedia.org/wiki/Management_information_system
http://www.tutorialspoint.com/management_information_system
http://rbi.org.in/scripts/PublicationReportDetails.aspx
en.wikipedia.org/wiki/Reserve_Bank_of_India
www.rbi.org.in/commonman/english/scripts/FAQs.aspx