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Top 5 Suggested RPA Processes for Indian Banks

Robotic Process Automation (RPA) is an emerging technology where robots mimic human functions with greater speed and accuracy. RPA envisages deployment of software robots in day- to-day data processing activities of the Organizations. The jobs most suitable for RPA are repetitive, high Volume and rule based processes performed by human resources using IT Systems. The advantages of deploying robots in business operations are Removal of Drudgery of repetitive work by human resources Efficiency in operations;…

Citizenship by Investment – Time for review to help Common Reporting Standard (CRS)!!

Citizenship by investment is a process whereby wealthy individuals can obtain a second citizenship very quickly in exchange for an investment or donation. To encourage Foreign Direct Investment and to attract high net worth individuals to settle and do business, many countries have launched their investment programs to enable rich people secure citizenship in these countries. The investment schemes are termed as Citizenship By Investment (CBI) and Residence By Investment (RBI), while different names have…

FATCA and CRS Compliance – DQR-RRC

What is DQR-RRC? FATCA & CRS compliance reports are filed in Statement 61B XML format with Central Board of Direct Taxes (CBDT) every year on or before 31st May for the preceding calendar year. These reports are validated by CBDT and they release Data Quality Report containing the Reports Requiring Correction nicknamed as DQR-RRC. The data errors are classified as Mandatory Errors, Defects and Exceptions. The statement will be rejected if Mandatory Errors are present…

Golden Passport for the Rich …Is Citizenship becoming a commodity to circumvent Common Reporting Standard (CRS)?

Organization for Economic Co-operation and Development (OECD) has identified certain investment schemes promoted by some countries to enable rich people to obtain citizenship in that country without insisting on their physical presence in the country at least for a minimum period of 90 days in a year. The investment schemes are termed as Citizenship By Investment (CBI) and Residence By Investment (RBI), while different names have been assigned to the schemes by the countries. Individuals…

FATCA – US TIN – 3 Rules to be followed by RFIs under Model-1 IGA

As per the Inter-Governmental Agreement (IGA-Model1) between India and USA, Indian Reporting Financial Institutions (RFI) have submitted data relating to the financial accounts for the calendar years ended 2015, 2016 & 2017 to Central Board of Direct Taxes(CBDT). CBDT has commenced exchange of data with USA-Internal Revenue Service (USA-IRS). All the RFIs are required to report U.S. Taxpayer Identification Numbers (U.S. TINs) for the US reportable accounts. If such RFIs comply with the procedure, then…

Why should you outsource Application Support on a managed services mode ?

Technology is spreading its wings everywhere like wildfire and BFSI is not an exception to this. Rapid strides in Technology have resulted in exploring outsourced services & resources to render efficient service to customers. Is it necessary to outsource services, given the strong and well-trained workforce available in sectors like BFSI ? While I agree that staff available in BFSI are knowledgeable in handling domain related services, but their technical skills and experience may not…

CRS Compliance Procedure for Entities – Pre-existing Accounts

Needless to say, Common Reporting Standard (CRS) Compliance by Financial Institutions is a statutory requirement.The regulation encompasses Due diligence completion and reporting of Financial Accounts of Individuals, Entities and Controlling persons of the Entities with the foreign resident status of a CRS jurisdiction. The procedure for Due Diligence of Individuals is relatively simple compared to that of Entities as it requires several checks to be carried out before arriving at the reportable status of the…

Due Diligence for FATCA_CRS Compliance – Challenges for Reporting Financial Institutions and the Remedial Measures

Challenges: Each country desires its residents to be tax transparent and in the process the statutory authorities introduce multiple due diligence procedures to be adopted by Financial Institutions (FI). These procedures vary from time to time depending on varying demands either from local government or from Global practices. The compliance rules/procedures imposed by tax authorities of different jurisdictions have thrown challenges for the Financial Institutions in implementing such procedures on the account holders especially the…

“Improving Application support efficiency in Core Banking”

Core Banking is a rapid innovation in Banking Technology and it has become the backbone for every business transaction done through several delivery channels. Core Banking Application works under a multi-tiered architecture covering database, application and web layers beside net working layer to enable the user to access the application. Application Layer of Core Banking platform needs support resources having the following skills, while technical resources are sufficient for providing support services for other layers:…