The Reserve Bank is in the process of establishing a large digital public credit registry to capture the details of all borrowers, including voluntary default and ongoing litigation, to verify financial arrears. The PCR will also include data from entities such as the Sebi Market Regulator, the Ministry of General Affairs, the Goods and Services Tax Network (GSTN) and the Indian Bankruptcy and Bankruptcy Council. (IBBI), to enable banks and financial institutions to obtain a 360-degree profile of the company. existing and potential borrowers in real time.
The Reserve Bank has invited companies with a turnover of more than 100 crores over the last three years to develop the register. In June of this year, the RBI announced a PCR for India to address information asymmetry, increase access to credit and strengthen the credit culture in the world. 'economy.
Previously, the RBI had formed a high-level task force to review the current availability of credit information, the adequacy of existing information utilities and to identify gaps that may exist. be filled by an HBP. "In essence, PCR will constitute a digital registry of granular credit information authenticated and will function as a financial information infrastructure providing access to various stakeholders and enriching the existing ecosystem of information information." credit, "says the EOI document.
The PCR would constitute the single point of mandatory reporting for all significant events of each loan, regardless of any threshold set in the loan amount or type of borrower. At present, there are several granular credit information repositories in India, each with somewhat different objectives and coverage.
Within the RBI, CRILC is a set of borrower-level surveillance data with an overall exposure threshold of Rs 5 billion. In addition, four private credit information companies (CICs) operate in India. The RBI has instructed all its regulated entities to submit credit information to the four CICs individually.
According to the EOI, the proposed solution should allow easy integration with auxiliary information sources, such as the lists of Ministries of General Affairs, Sebi, GSTN, CERSAI, utility providers, the central fraud registry and the lists of voluntary discard / notice files. In addition, borrowers could also access their own credit information and request corrections to reported credit information.
The establishment of the HBP takes on all its importance in the face of rising bad debts in the financial system. Non-performing assets in the banking system amount to about Rs.