What changed
Previously, DQI was only applied to consumer segment data submissions. Now, CICs must create DQIs for commercial and microfinance segments as per new annexures. CICs will provide monthly numeric scores at both CI and file level, compute industry-level DQIs by category, and share half-yearly rolling benchmarks.
What it means for you
Banks and lenders must now track data quality scores for commercial and microfinance portfolios, not just consumer. Poor scores trigger mandatory decline explanations from CICs and require half-yearly reviews by top management. This pushes institutions to improve data accuracy across all lending segments to avoid regulatory scrutiny.
What you must do
- Ensure your data submissions to CICs for commercial and microfinance segments are accurate and complete before March 31, 2024.
- Monitor monthly DQI scores from CICs and investigate any month-on-month declines or scores below half-yearly industry benchmark.
- Conduct half-yearly reviews of DQI for all segments and submit corrective action reports to top management within two months of each half-year end.
- Coordinate with your credit information reporting teams to align with new DQI formats in Annex I and II.
Who it affects
All Commercial Banks including Small Finance Banks, Local Area Banks, RRBs, All Primary (Urban) Co-operative Banks, State Co-operative Banks, Central Co-operative Banks, All-India Financial Institutions (Exim Bank, NABARD, NHB, SIDBI, NaBFID), All Non-Banking Financial Companies including Housing Finance Companies, All Asset Reconstruction Companies, All Credit Information Companies
When do CICs need to start providing DQI scores for commercial and microfinance segments?
CICs must provide these DQIs to all credit institutions by March 31, 2024, and thereafter on a monthly basis.
What happens if my institution's DQI score declines month-on-month or falls below the industry benchmark?
CICs must provide reasons for the decline to your institution. You are expected to take corrective actions and report to top management within two months of each half-year end.
How is the industry-level DQI benchmark calculated?
CICs compute industry-level DQIs as weighted averages of CI-level scores by category (e.g., Public Sector Banks, NBFCs) monthly. A half-yearly benchmark is the rolling average of the preceding six months' industry scores.