Media365
The Reserve Bank of India (RBI) on Wednesday released a draft ‘Guidance on Regulatory Expectations for Data Governance’, inviting public comments as it seeks to strengthen data governance standards across banks and other regulated financial entities amid rapid digitalisation of the sector.
The draft guidance will apply to a wide range of regulated entities, including commercial banks, small finance banks, payment banks, regional rural banks, urban and rural cooperative banks, All India Financial Institutions, non-banking financial companies (NBFCs), asset reconstruction companies and credit information companies.
The central bank has invited feedback from regulated entities, industry stakeholders and the general public until August 17, 2026. Comments can be submitted through the ‘Connect 2 Regulate’ section on the RBI website or via email to the Department of Regulation.
Explaining the rationale behind the move, the RBI said the growing use of technology-driven business models has made data a critical asset for financial institutions. As the volume, variety and velocity of data continue to increase, robust data governance has become essential to ensure that information remains accurate, consistent, secure and fit for purpose across business functions and systems.
The central bank cautioned that weaknesses in data governance could expose regulated entities to financial, operational, compliance and reputational risks. The proposed framework is intended to help institutions strengthen their data governance practices throughout the data lifecycle and promote consistent standards across the financial system.
According to the draft, the guidance outlines broad regulatory expectations covering governance structures, roles and responsibilities, data architecture, metadata and data lineage, data quality, as well as third-party arrangements involving data sharing.
