Supervisory Data Quality Index (sDQI)

Context:

• The quality of regulatory data submitted by Indian banks has improved, with the Supervisory Data Quality Index (sDQI) for Scheduled Commercial Banks (SCBs) rising to 90.9 in December 2025 from 90.7 in September 2025.
• The increase reflects better compliance and improved internal data governance, though gains in accuracy and consistency were partially offset by declines in completeness and timeliness.
• The Exception: Public Sector Banks (PSBs) were the only group to see a dip in their score, falling to 91 from 91.1.

BACKGROUND CONCEPTS

• Supervisory Data Quality Index (sDQI): A framework introduced by the RBI to evaluate the reliability of data submitted by banks. High-quality data is critical for the RBI to perform effective “Supervisory Oversight” and detect systemic risks early.
• The Four Pillars of sDQI:
  1. Accuracy: Ensuring the data reflects the true financial state without errors.
  2. Timeliness: Submitting data within the prescribed regulatory deadlines.
  3. Completeness: Ensuring no mandatory data fields or reports are missing.
  4. Consistency: Ensuring data remains uniform across different reports and time periods.
• Scheduled Commercial Banks (SCBs): Banks listed in the Second Schedule of the RBI Act, 1934, including Public, Private, Foreign, and Small Finance Banks.

KEY TAKEAWAYS

• Sectoral Standouts: Small Finance Banks (SFBs) emerged as the top performers with an sDQI of 91.9, achieving perfect scores in accuracy and consistency.
• PSB Struggle: While PSBs still hold a relatively high score (91), their slight decline was attributed to weaknesses in completeness and timeliness, suggesting procedural bottlenecks in data filing.
• Foreign & Private Banks: Foreign banks improved to 90.7, while Private sector banks remained stable at 90.6.
• The Trade-off: System-wide, banks are getting better at making sure the data is “correct” (accuracy/consistency), but are struggling to get the “full picture” (completeness) to the RBI “on time” (timeliness).

CONCEPTUAL MCQs

Q1. Which of the following parameters saw an aggregate improvement across Scheduled Commercial Banks (SCBs) in the December 2025 sDQI report?

A) Completeness and Timeliness

B) Accuracy and Consistency

C) Only Timeliness

D) All four parameters equally

Q2. Small Finance Banks (SFBs) achieved the highest sDQI score (91.9). Which specific areas contributed to this perfect sub-score?

A) Timeliness and Completeness

B) Internal Audit and Human Resources

C) Accuracy and Consistency

D) Loan Recovery and NPA Management

ANSWERS

Q1: B (Explanation: The report explicitly states that while accuracy and consistency improved, the drop in completeness and timeliness weighed on the overall performance.)

Q2: C (Explanation: According to the RBI data, the top performance of SFBs was specifically supported by a perfect score in the accuracy and consistency metrics.)

EXAM RELEVANCE

Exam	Focus Area	Relevance Level
RBI Grade B	Finance – Banking System in India; RBI’s Supervisory Functions	Very High
SEBI Grade A	Data Governance and Regulatory Compliance	Moderate
NABARD	Recent RBI circulars and Banking Indices	High