Mumbai(ABC Live): On 24 September 2025, the Reserve Bank of India (RBI) issued a press note releasing the Supervisory Data Quality Index (sDQI) for Scheduled Commercial Banks (SCBs) for June 2025 (RBI Press Note). The index measures the quality of supervisory returns across four key areas: Accuracy, Timeliness, Completeness, and Consistency, in line with the Master Direction on Filing of Supervisory Returns 2024.

The sDQI for SCBs improved to 89.9 in June 2025, up from 89.3 in March 2025 and 88.6 in March 2024. While the increase appears modest, it signals a steady structural improvement. Most importantly, no bank scored below 80, a first for India’s banking system.

sDQI Data Trends (March 2024 ? June 2025)

Insight: Over five quarters, SCBs improved by 1.3 points, closing the gap at the lower end and showing system-wide discipline.

Dimension-wise Performance (March 2025 Benchmark)

Takeaway: Completeness remains high, but timeliness and accuracy remain weak spots, particularly for PSBs.

Why Small Finance Banks Emerged as the Most Disciplined

Small Finance Banks (SFBs) consistently outperformed larger peers, often crossing the 90+ “Good” band. Reasons include:

• Simplicity of business models (limited products, smaller portfolios).
• Digital-first IT systems, unlike legacy-heavy PSBs.
• Tight RBI supervision since their inception.
• Reputation incentives as they depend on depositor trust to grow.
• Smaller scale = stronger accountability, with lapses traceable to individuals.

Comparative Analysis: SFBs vs PSBs vs Private Banks

Result:

• SFBs: Agile, reputation-driven ? leaders in discipline.
• PSBs: Good completeness, but dragged down by timeliness/accuracy.
• Private Banks: Balance IT strength with complexity challenges.

Why the sDQI Matters for India?

1. Financial Stability – Detects risks early, prevents NPA surprises.
2. Global Trust – Aligns with BCBS 239 and ECB standards, boosting investor confidence.
3. Smarter Policymaking – Reliable data underpins monetary policy and liquidity management.
4. PSB Accountability – Pushes India’s largest banks to modernise.
5. Fiscal Prudence – Reduces taxpayer bailouts by catching stress early.
6. Fintech Growth – Ensures reliable CRILC & liquidity data for digital credit.
7. Geopolitical Timing – Amid tariff wars and GIFT City ambitions, sDQI signals India’s regulatory credibility.

Global Comparisons: Where India Stands

Observation:
India is among the few regulators globally to publish a quantitative index. While developed economies rely on penalties or internal reviews, India uses reputational incentives, giving it a unique transparency edge.

Why ABC Live is Publishing This Report Now

ABC Live is publishing this report on 24 September 2025, immediately after RBI’s press release, because the sDQI outcome carries strategic signals:

1. No bank below 80 – a historic milestone in supervisory discipline.
2. SFBs outperforming larger peers – showing how digital-first, reputation-sensitive banks may define India’s financial future.

How This Report is Unique

• Deeper Data Analysis – beyond headlines, with trend tables and dimension-wise breakdown.
• Global Benchmarking – situating India’s sDQI against ECB, Fed, BoE, MAS, and BCBS standards.
• Strategic Lens – linking data quality to fiscal prudence, PSB reforms, fintech growth, and India’s global credibility.

Unlike mainstream coverage, ABC Live turns a technical compliance index into a strategic story of India’s economic resilience.

Conclusion

The RBI’s Supervisory Data Quality Index (sDQI) for June 2025 may appear as a technical score, but it is in fact a strategic safeguard for India. By ensuring financial stability, improving transparency, and aligning with global standards, it strengthens India’s banking future.

With SFBs leading, PSBs struggling, and private banks balancing complexity, the next step is clear: push all banks firmly into the “Good” band (>90) and enhance transparency by publishing bank-wise scores.

In global terms, India’s sDQI is one of the few quantitative, public-facing regulatory indices, projecting India as not just a large market but a disciplined, credible, and investment-ready financial hub.

Sources

1. RBI Press Release: Supervisory Data Quality Index for SCBs (June 2025), 24 Sept 2025

2. Economic Times – Banks’ Supervisory Data Quality Index Score Improves

3. Moneycontrol – Private Banks and SFB Completeness Score Fell on RBI’s Data Quality Index

4. Times of India – PSU Banks Lag Peers in Accuracy, Timeliness

5. Business Standard – RBI sDQI March 2025 Performance

6. Rediff – Banks’ sDQI Improves, RBI Data Quality Index

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