The Reserve Bank of India (RBI) has directed Credit Information Companies (CICs) to create a data quality index tailored specifically for the commercial and microfinance sectors.
Back in June 2014, the RBI had issued guidelines for establishing a standardized Data Quality Index (DQI) to assess the accuracy of data submissions from Credit Institutions (CIs) to CICs, aiming for ongoing improvements. Currently, the DQI is in use for evaluating data submitted in the consumer segment.
In order to advance the implementation of the DQI, the RBI has decided that CICs should formulate DQIs for both the commercial and microfinance segments. As per the circular, CICs are mandated to furnish DQIs for these segments to all Credit Institutions by March 31, 2024. These DQIs should be presented as numeric scores on a monthly basis to all member credit institutions. Additionally, Credit Institutions have been instructed to conduct a biannual review of the DQI for all segments, with the goal of enhancing the quality of data submitted to CICs.