RBI issues data governance guidance framework for banks to strengthen data quality, security and accountability

The Reserve Bank of India (RBI) on Wednesday issued the ‘Guidance on Regulatory Expectations for Data Governance’ for banks and other Regulated Entities (REs) prescribing a comprehensive framework to strengthen governance of data across the banking system. The objective of the guidance is to improve data quality, accountability, risk management and security while ensuring compliance with the Digital Personal Data Protection (DPDP) Act, 2023, and other applicable laws. This has become important because with the increasing digitalisation of the financial sector and growing adoption of technology-driven business models, data has emerged as a critical asset for REs. As the volume, variety and velocity of data continue to increase, effective data governance has become essential to ensure that data remains accurate, consistent, secure and fit for purpose across functions and systems, the RBI said.