RBI Asks Banks to Use Credit Information for Corporates

The Reserve Bank of India (RBI) on Wednesday 7th March, recommended banks to use credit bureaux information not only for retail borrowers but also for corporates. An official from RBI said that commercial banks are using information from the credit bureaux to expand loans to retail borrowers more in comparison to corporates.

RBI revealed that the creation of unique customer identification numbers can be looked over by RBI and ‘The Financial Stability’ and G-20 is also in favour of it. The Aadhar numbers will provide a lot of hope in this regard.

The major rationale behind the creation of credit information agencies is that, these agencies would help in increasing the lending activity to SMEs and poorer section of the society. Without proper credit information, banks’ lending activities will be sub-optimal with bad borrowers. So, RBI emphasized on creating awareness among the customers about credit information bureaux.

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