Source: Economic Times
Context:
The Reserve Bank of India (RBI) reported a steady improvement in the Supervisory Data Quality Index (sDQI), which evaluates the quality of data submitted by Scheduled Commercial Banks (SCBs).
Key Highlights:
- Index Score: Improved to 89.9 (June 2025) from 89.3 (March 2025).
- Coverage: 87 Scheduled Commercial Banks.
- Parameters Assessed:
- Accuracy
- Timeliness
- Completeness
- Consistency
- Supervisory returns assessed include asset quality, liquidity, capital adequacy, and risk-based supervision.
- No bank scored below 80, showing improvement across the sector.
- Small Finance Banks (SFBs): Improved slightly from 90.6 (March 2025) to 90.7 (June 2025).
Significance
- Strengthens regulatory compliance and data governance.
- Helps RBI in risk-based supervision and financial stability monitoring.
- Ensures reliable and timely data for policy decisions.
About sDQI
- Introduced by RBI: To benchmark quality of supervisory data submissions.
- Objective: Improve accuracy and timeliness of reporting by banks.
- Importance: Critical for detecting risks early in the financial system.
