RBI’s Supervisory Data Quality Index Hits 89.3: Indian Banks Show Stronger Data Discipline in March 2025

 

India's banking sector has witnessed a dramatic improvement in data management with Supervisory Data Quality Index (sDQI) for SCBs rising to 89.3 in March 2025 from 88.6 for the comparable period last year, Reserve Bank of India's latest review showed.

 

Key Highlights:

 

•⁠  ⁠The RBI devised sDQI, which checks the quality of data furnished by 87 SCBs—public, private, foreign, and small finance banks—against four parameters: accuracy, timeliness, completeness, and consistency.

 

•⁠  ⁠The index measures important financial performance such as asset-liability management, capital adequacy, non-performing loans, operating profit, risk-based supervision, and liquidity ratios.

 

•⁠  ⁠Private sector banks enhanced their score to 89.6, foreign banks to 89.1, and small finance banks to a high score of 90.6, while that of public sector banks was 88.8.

 

•⁠  ⁠The enhanced sDQI takes into account enhanced compliance, transparency, and reporting standards, enhancing the RBI's capability to track the financial health and regulatory compliance of banks.

 

Prospects: As banks continue to automate their processes within and adopt stricter reporting standards, India's financial system is on the threshold of greater stability and resilience. RBI's emphasis on data-driven, high-quality supervision is most likely to further improve risk monitoring and forward-looking regulatory action.

 

Source: RBI, Business World, Economic Times, CNBC-TV18