Regulatory and policy measures
The Reserve Bank of India has issued a draft "Guidance on Regulatory Expectations for Data Governance" aimed at strengthening data management practices across the financial sector. The guidance is applicable to a wide range of regulated entities, including Commercial Banks, Small Finance Banks, Payments Banks, Local Area Banks, Regional Rural Banks, Urban Co‑operative Banks, Rural Co‑operative Banks, All India Financial Institutions, Non‑Banking Financial Companies, Asset Reconstruction Companies, and Credit Information Companies. It outlines expectations concerning data governance frameworks, roles and responsibilities, data architecture, metadata and lineage, data quality standards, and the management of third‑party data sharing arrangements.
Entities are invited to submit their comments on the draft by 17 August 2026. Feedback can be provided through the RBI’s Connect 2 Regulate portal or by emailing dor.datagovfed@rbi.org.in with the subject line "Feedback on Guidance on Regulatory Expectations for Data Governance". Submissions should be addressed to the Chief General Manager, Operational Risk Group, Department of Regulation, Central Office, Reserve Bank of India, Shahid Bhagat Singh Marg, Fort Mumbai – 400 001.
The background emphasizes that rapid digitalisation and the adoption of technology‑driven business models have made data a critical asset. As data volume, variety, and velocity increase, robust data governance becomes essential to ensure data remains accurate, consistent, secure, and fit for purpose across functions and systems. Weak data governance can expose regulated entities to broader financial, operational, compliance, and reputational risks. The RBI’s guidance seeks to mitigate these risks by promoting sound data management practices throughout the data lifecycle.
Financial stability and inclusion
The RBI notes that deficiencies in data governance could translate into systemic vulnerabilities, affecting the stability of the financial system and the confidence of stakeholders. By establishing clear regulatory expectations, the guidance aims to enhance the resilience of financial institutions, support effective risk management, and safeguard the integrity of data‑driven services offered to customers.
The draft guidance reflects the RBI’s commitment to fostering a secure, reliable, and transparent digital financial ecosystem.