RBI Reports Improved Supervisory Data Quality Index For Banks In Q2 FY2026

(MENAFN- KNN India) New Delhi, Jan 7 (KNN) The Reserve Bank of India (RBI) on Tuesday released the Supervisory Data Quality Index (sDQI) for Scheduled Commercial Banks for the quarter ended September 2025, showing improved data quality over the previous quarter.

The sDQI, designed to measure the accuracy, timeliness, completeness, and consistency of banks' supervisory return submissions, is based on the principles set out in the Master Direction on Filing of Supervisory Returns, 2024.

Overall Trends

The overall sDQI score for Scheduled Commercial Banks (SCBs) rose to 90.7 in September 2025, up from 89.9 in the April–June 2025 quarter.

This assessment covers 87 SCBs and evaluates key returns across multiple areas, including Asset Liability and Off-Balance Sheet Exposures (ALE), Asset Quality (RAQ), Operating Results (ROR), Risk-Based Supervision (RBS), Liquidity Return (LR), Capital Adequacy (RCA), and the Central Repository of Information on Large Credits (CRILC – Main).

No bank scored below 80 in September 2025, indicating that all SCBs achieved at least an 'acceptable' level of data quality.

Bank-Wise sDQI Performance

Bank-wise sDQI performance shows steady improvement across all categories between June and September 2025.

Scheduled Commercial Banks rose from 89.9 to 90.7, Public Sector Banks from 90.0 to 91.1, Private Sector Banks from 90.0 to 90.6, Foreign Banks from 89.7 to 90.4, and Small Finance Banks from 90.7 to 91.5, reflecting an overall strengthening in data quality standards.

The sDQI evaluates each bank on four parameters-Accuracy, Completeness, Timeliness, and Consistency-providing a quantitative measure of supervisory data quality.

Interpretation of sDQI Scores

The interpretation of sDQI scores is as follows: a score below 70 indicates major concerns, scores between 70 and 80 suggest areas that need improvement, scores from 80 to 90 are considered acceptable, and scores above 90 are rated as good.

The RBI noted that the sDQI serves as a comprehensive tool for assessing data quality, forming a key input for supervisory examinations and helping ensure robust reporting standards across the banking sector.

(KNN Bureau)

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