BTL 814 - Supervisory Data Quality Index (sDQI)

 

The Banking Tutor’s Lessons

BTL 814                                                                  15-08-2025

Supervisory Data Quality Index (sDQI) 

RBI utilizes sDQI to monitor and enhance the quality of data submitted by Scheduled Commercial Banks (SCBs). 

Purpose: The sDQI evaluates the accuracy, timeliness, completeness, and consistency of supervisory returns submitted by banks to the RBI. It aims to ensure that banks provide clear, complete, and timely data for effective supervision. 

Coverage: The sDQI covers 87 SCBs and assesses the quality of key returns submitted for supervisory review. These returns include those related to asset quality, liquidity, capital adequacy, and large credit exposures. 

Scoring: The RBI classifies sDQI scores into four categories: above 90 is "Good", 80-90 is "Acceptable", 70-80 "Needs Improvement", and below 70 "Major Concerns". The overall sDQI score for SCBs improved to 89.3 in March 2025, compared to 88.6 in March 2024. 

Benefits: A higher sDQI score indicates improvements in how banks collect, manage, and report financial data. This in turn enhances the RBI's ability to monitor risks and take pre-emptive actions when signs of stress appear in the banking system. 

Sekhar Pariti

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