Supervisory Data Quality Index of Banks Improves to 89.3 in March 2025: RBI

India’s banking system is showing signs of stronger data governance. According to the Reserve Bank of India (RBI), the Supervisory Data Quality Index (sDQI) for Scheduled Commercial Banks (SCBs) has climbed to 89.3 in March 2025 from 88.6 a year earlier, indicating better quality and reliability in financial reporting.

RBI’s Supervisory Data Quality Index Shows Steady Improvement

In a significant development for India’s banking sector, the Reserve Bank of India (RBI) has announced that the Supervisory Data Quality Index (sDQI) for Scheduled Commercial Banks (SCBs) has improved to 89.3 in March 2025, up from 88.6 in March 2024. This metric evaluates how accurately and consistently banks report their financial data — a critical component for effective supervision.

The sDQI, introduced by the RBI, is a composite index that assesses the quality of supervisory returns submitted by banks. It takes into account several parameters such as accuracy, timeliness, completeness, and consistency of data provided on key financial metrics, including asset quality, capital adequacy, bad loans, and asset-liability positions.

The latest improvement reflects an ongoing effort by both the RBI and banking institutions to enhance transparency, accountability, and financial discipline in the sector.

What Does the Index Cover?

The Supervisory Data Quality Index is calculated based on submissions from 87 Scheduled Commercial Banks, which include public sector banks, private banks, and small finance banks. The returns analyzed include:

• Asset-liability and off-balance sheet exposures
• Asset quality reports
• Operating results
• Risk-Based Supervision (RBS) returns
• Liquidity-related disclosures

These reports help the central bank assess the financial health and regulatory compliance of banks more effectively.

Why It Matters?

A higher sDQI score signals improvements in the way banks collect, manage, and report financial data. This, in turn, enhances the RBI’s capacity to monitor risk and take preemptive actions if any early signs of stress appear in the banking system.

Moreover, with the increasing complexity of financial products and systemic interlinkages, high-quality supervisory data is essential for maintaining financial stability.

Read More: RBI’s new KYC rules: Extended timeline and fresh norms for banks and customers.

Conclusion

The rise in the sDQI score is a positive indicator for the Indian banking system. It underscores the RBI’s commitment to fostering a sound regulatory environment and improving data-driven supervision. As banks continue to refine their internal systems and adhere to stricter reporting standards, further gains in data quality — and thereby, financial resilience — are likely in the future.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.