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Corporate Laws Central Ministry of Finance Reserve Bank of India Act, 1934

Data Quality Index for Commercial and Microfinance Segments

20-Sep-2023 | RBI/2023-24/62 DoR.FIN.REC.39/20.16.056/2023-24

Reserve Bank of India (RBI) has released a Circular detailing the implementation of Data Quality Index (DQI) for Commercial and Microfinance segments by Credit Information Companies (CICs). This directive will be effective from September 20, 2023.

Key Highlights of the Circular:

CICs are mandated to prepare DQIs for both Commercial and Microfinance segments (as per Annex I and II respectively) and provide them to all Credit Institutions (CIs) by March 31, 2024.

CICs are advised to:
1. Provide DQI scores for Commercial and Microfinance segments to all member credit institutions on a monthly basis.
2. Furnish DQI scores for these segments at both CI and file level. The CI level scores will be computed as weighted averages of file level DQI scores of their respective segments.
3. Calculate industry level DQIs for each reporting segment on a monthly basis.
4. Compute a half-yearly Industry Benchmark as a rolling average of the preceding six months' Industry level DQI score for the respective category of CIs.
5. Offer explanations for any decline in score to each CI, in cases where either the CI level score has decreased from the previous month, or the CI level score is below the half-yearly industry benchmark.

CICs are required to provide monthly data of CI level DQI and industry level DQI for all segments to the Department of Supervision, Reserve Bank of India, Central Office at half-yearly intervals (as on September 30 and March 31 each year) for informational and monitoring purposes.

Credit Institutions are strongly advised to conduct a half-yearly review of the DQI for all segments to enhance data quality.

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