RBI Data Quality Index March 2025: Supervisory Scores of Indian Banks

RBI data quality index March 2025 reveals improved supervisory reporting by Indian banks. Learn sDQI scores, top-performing banks, and key exam takeaways.

RBI’s Supervisory Data Quality Index Rises in March 2025

What is the Supervisory Data Quality Index?

The Reserve Bank of India (RBI) developed the Supervisory Data Quality Index (sDQI) to assess the quality of supervisory returns submitted by Scheduled Commercial Banks (SCBs). This composite index evaluates data along four pillars: accuracy, timeliness, completeness, and consistency, covering crucial financial parameters such as asset quality, capital adequacy, liquidity, and off‑balance sheet exposures

Key Improvement in March 2025

As of March 2025, the aggregate sDQI score across 87 banks rose to 89.3, up from 88.6 in March 2024—a notable improvement in data governance This rise reflects enhanced accuracy and timeliness of reported data.

Bank-wise Performance Comparison

• Small Finance Banks (SFBs) lead with the highest score of 90.6, crossing into the “good” category (above 90)
• Private Sector Banks scored 89.6, showing marginal improvements
• Foreign Banks achieved 89.1, boosted primarily by timeliness and accuracy
• Public Sector Banks (PSBs) came in at 88.8, performing well in completeness but lagging in other dimensions .

Areas of Progress & Concern

• Accuracy and Timeliness: All bank categories showed improved performance, with foreign banks particularly gaining in timeliness (up by 4.7 points) and private banks showing gains in accuracy (+2 points)
• Completeness: Slight decline for private and small finance banks—from ~99.7 to 98.9—indicating occasional lapses in submitting all required information
• Consistency: Incremental improvement across all groups, aiding the rise in overall sDQI

Importance of High Data Quality

High-quality supervisory reporting enhances the RBI’s capability to detect early warning signs, manage systemic risks, and formulate effective supervision policies. As banks increasingly diversify in complex asset structures, such data becomes vital for sustaining financial stability.

Why This News Matters

Boosts Financial Stability & Risk Assessment

An improved sDQI means more reliable and timely data submission from banks. This enables the RBI to make more informed decisions—crucial for risk-based supervision and early intervention frameworks in sectors like banking or civil service oversight.

Reflects Governance Standards

For aspirants preparing for exams like Banking, Civil Service (IAS/PCS), or Defence Financial Institutions modules, understanding sDQI demonstrates banks’ commitment to governance and regulatory compliance—topics often featured in Economy and Regulatory Affairs sections.

Policy Relevance

A rising sDQI might influence RBI’s future directives on supervisory reporting. Enhanced data quality can support decisions on interest rates, capital buffers, or liquidity norms, all of which are key content areas in Public Administration and Economy syllabi.

Historical Context

Genesis of sDQI

Introduced under the Master Direction on Filing of Supervisory Returns (2024), the sDQI was RBI’s response to global best practices, such as those at the European Central Bank and Fed KC.
Initially released in March 2024, it set a benchmark score of 80–90 (“acceptable”) and >90 (“good”). The first batch covered data for March 2024 and March 2025

Global & Regulatory Inspiration

RBI aligned the sDQI with international regulatory frameworks, capturing multi-dimensional metrics and peer-group evaluations. Over 87 SCBs are now assessed annually, spanning PSBs, private & foreign banks, and SFBs

Key Takeaways from RBI’s sDQI Update

Frequently Asked Questions (FAQs)

1. What is RBI’s Supervisory Data Quality Index (sDQI)?

The Supervisory Data Quality Index is a composite score developed by the RBI to measure the quality of supervisory data submitted by Scheduled Commercial Banks (SCBs). It assesses accuracy, timeliness, completeness, and consistency of submitted financial data.

2. Why is the sDQI important for the Indian banking system?

A higher sDQI ensures better regulatory oversight, enabling the Reserve Bank of India to identify early signs of risk in the financial system. It improves the effectiveness of policy decisions, banking supervision, and risk management.

3. How did banks perform in the March 2025 sDQI update?

The overall sDQI score improved from 88.6 (March 2024) to 89.3 (March 2025). Small Finance Banks led with the highest score of 90.6, followed by private sector and foreign banks.

4. What do the different score ranges indicate in the sDQI?

sDQI scores above 90 are considered “good,” while scores between 80 to 90 are considered “acceptable.” Scores below 80 may indicate concerns in supervisory data reporting.

5. Is the sDQI relevant for government exam preparation?

Yes, topics like financial regulation, banking reforms, and RBI policies are important for exams like UPSC, SSC CGL, banking exams (IBPS, SBI), and state-level PCS. sDQI is a recent and high-relevance topic under Economy and Financial Governance.

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