The Reserve Bank today said it expects banks to use credit bureaux information not just for retail borrowers but equally for corporates also.
“Commercial banks are increasingly using information from the credit bureaux to extend loans to retail investors more in comparison to corporates.
“The impression we have sometime back is that this is used actively for retail and not so much for corporates,” RBI Deputy Governor, Mr Anand Sinha, told a meeting organised by Credit Information Bureau (India) Ltd (Cibil).
Noting that banks are using credit bureau information for lending to retail investors, Mr Sinha pointed out that this is less used in case of corporate accounts now.
Mr Sinha asked these bureaux to furnish data timely and accurately for greater relevance. “The data should be furnished timely and accurately.”
The RBI Deputy Governor expressed the hope that going forward, banks would do a better balancing act. “Now, there are three more credit information companies. I am sure, the situation will definitely improve.”
Referring to the creation of unique customer identification numbers, Mr Sinha said the central bank is looking at it. “We are looking at it. The Financial Stability Board is advocating it and G-20 is also in favour of it,” he said, adding issuance of the Aadhar numbers provides a lot of hope in this regard.
Talking about the rationale behind the creation of credit information agencies, he said this would help in increasing lending activity to SMEs and the poorer sections of society.
“Without proper credit information, bank lending will be sub-optimal, with bad borrowers. Also, credit information will help in increasing lending to SMEs and the poor.”
Mr Sinha emphasised on creating awareness among customers about the credit information bureaux.