Facebook Pixel Code

Quality info on credit key to hedge risks: RBI

The Reserve Bank of India has asked banks to collect quality credit information data to ensure asset quality.

The Reserve Bank of India (RBI) has asked banks to collect quality credit information data to ensure asset quality. ?Credit information removes information asymmetry, a situation in which both the provider and the seeker of debt is better informed, resulting in a win-win situation. It reduces frauds and at the same time lets the borrower seek loans at a price appropriate to his credit history,? said NS Vishwanathan, RBI’s regional director for Tamil Nadu & Puducherry.

Speaking at a Credit Information Bureau (India) Ltd (CIBIL) conference on increasing credit penetration and improved asset quality, Vishwanathan said a tremendous improvement in the availability of credit information has helped in improving the credit quality in several retail segments. With Aadhar gaining ground, issues of multiple customer-ids and therefore difficulties in capturing complete credit information about an individual would get eliminated over a period of time.

While credit information has expanded in coverage, there are still data quality issues and therefore the financial institutions need to improve the quality of data being provided to CICs so that its eventual users ? the banks and financial institutions themselves ? would be better off, he said.

Get live Share Market updates, Stock Market Quotes, and the latest India News and business news on Financial Express. Download the Financial Express App for the latest finance news.

First published on: 13-12-2012 at 00:16 IST
Market Data
Market Data
Today’s Most Popular Stories ×