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RBI sets up task force for India public credit registry
October 25 , 2017
2399 days
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- RBI has constituted a High Level Task Force on Public Credit Registry (PCR) that can provide a roadmap for developing a powerful credit information system.
- PCR is an extensive central database of bank loans (credit information) that is accessible to all stakeholders.
- It captures credit data on all kinds of loans which will be helpful in improving assessment of credit risk by the banks, early detection of non-performing assets (NPAs), and to improve recovery of loans.
- It certifies the details of collaterals, can enable the writing of contracts that prevent over-pledging of collateral by a borrower.
- It will also help to prevent multiple financing against the same property.
- Initially, PCR will cover banks’ customers which can then be expanded to cover other financial institutions (NBFCs).
- It will be managed by a public authority like the central bank.
- It would help in enhancing efficiency of the credit market, increase financial inclusion, and improve ease of doing business and help control delinquencies.
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