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

Prelims-testable facts

• 01The RBI has issued a data governance guidance framework for banks to strengthen data quality, security, and accountability.
• 02The framework aims to build a stronger data governance ecosystem that enhances operational resilience and supports informed decision-making in India's digital banking environment.
• 03Banks are required to appoint data owners, data stewards, and data custodians as per the RBI's guidelines.
• 04The RBI's draft guidelines cover governance, quality, and third-party data sharing for banks and NBFCs.
• 05The framework is designed 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.
• 06Banks are expected to adhere to the RBI's guidelines on data governance by [insert date] as per the draft guidelines.

Trap alerts

• Most people think the RBI's data governance framework is only for banks, but actually it also applies to NBFCs.
• Most people think the RBI's framework focuses solely on data security, but actually it encompasses data quality, accountability, and risk management as well.