In a move aimed at enhancing data quality and monitoring, the Reserve Bank of India (RBI) has instructed credit information companies (CICs) to establish a common Data Quality Index (DQI) for both commercial and microfinance segments. The introduction of DQIs will aid in evaluating the accuracy and reliability of data submissions by credit institutions (CIs) to CICs, ultimately leading to improvements over time.
The RBI, in a press release, emphasized the importance of implementing DQIs to ensure data integrity in the financial sector. Currently, DQIs are in use for data submitted under the consumer segment.
As part of this directive, CICs are required to provide DQIs for both Commercial and Microfinance segments to all CIs by March 31, 2024. To maintain data quality, CIs are encouraged to conduct half-yearly reviews of the DQI for all segments and take corrective measures when issues arise. Furthermore, each CI is expected to present a report on these issues to their top management for review within two months after each half-year.
The RBI’s decision to expand the use of DQIs reflects its commitment to ensuring the accuracy and reliability of financial data, which is crucial for informed decision-making in the industry. This move aims to bolster the integrity of financial data and promote trust in India’s financial sector