Off-site Surveillance System: OSC-10 return - Additional data points

EC No. 49 /DoS - 14/2023

17 March 2023

Ref. No. NB. DoS. HO. / 6067 /ENSURE /P-177 / 2022-23

The Chairman
All Regional Rural Banks

Dear Sir/Madam

Off-site Surveillance System: OSR-10 return – Additional data points

Please refer to our circular No. NB. DoS. HO./ 4417/ENSURE /P-177 / 2021-22 dated 25 February 2022 wherein a quarterly return named “OSR-10” was introduced to capture information on qualitative parameters and a few other unaudited / audited quantitative parameters. The periodicity and timelines for submission of the returns are prescribed vide circular No. NB. DoS. HO/OSS/4826/P.63/2021-22 dated 28 March 2022.

2. We advise that, while reviewing the financial position of banks and analysis of large banks (inspected with reference to financial position as on 31 March 2022), the Board of Supervision [for StCBs, DCCBs and RRBs] (BoS), in its 88th meeting held on 29 December 2022, directed that the Supervised Entities (SEs) may be advised to assess CRAR and other key parameters like RoA, NIM, PCR, GNPA, NNPA, net profit etc. on quarterly basis and submit the data in ENSURE which would, inter alia, enable NABARD to improve the efficacy of analysing the performance of Supervised Entities in a systematic and timely manner.

3. In accordance with the directions of BoS, it has been decided to revise the “OSR-10 return by including additional data points. The revised return will be effective from quarter ending 31 March 2023 and all banks are advised to ensure submission of the prescribed return through ENSURE portal on an ongoing basis. The bank may evaluate the requirements and make suitable changes/improvements in its internal MIS so that the financial indicators are computed correctly to ensure timely accurate submission of returns.

4. We reiterate that all the returns prescribed under Off-site Surveillance System (OSS) are to be certified by the Chairman and Compliance Officer of your bank to ensure that the banks attach significant importance to timeliness and accuracy in submission of the OSS returns.

5. Further, the OSS / FMS returns are prescribed by NABARD in exercise of the powers conferred under Section 27(3) of Banking Regulation Act, 1949 and are, hence, statutory in nature. The SEs should ensure submission of these returns as per the schedule prescribed, without fail. Non-submission or wrong reporting in these returns will attract regulatory action as specified in the Act, ibid.

6. Please acknowledge receipt of this circular to our Regional Office concerned.

Yours faithfully

(K.S. Raghupathi)
Chief General Manager