RBI pushes banks, NBFCs to own data risks across third parties

The RBI has issued draft guidance on data governance titled 'Guidance on Regulatory Expectations for Data Governance,' making regulated entities such as banks and NBFCs fully accountable for data shared with third parties, vendors and group entities. Under the proposed framework, data sharing must be restricted to approved purposes handled by designated personnel, with institutions required to classify data by criticality and sensitivity and implement data quality metrics. The RBI has sought public comments on the draft by August 17.