RBI begins the process of setting up the digital public credit registry to capture all the details of borrowers

The Reserve Bank has taken steps to establish a broad-based digital public credit registry (PCR) to capture the details of all borrowers, including voluntary defaultors and ongoing lawsuits in order to check 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 launched a call for expressions of interest for the development of the register of companies with a turnover of more than 100 crores during the last three years.

In June of this year, the RBI had announced the establishment of an HBP for India in order to address asymmetric information, to promote the access to credit and strengthen the culture of credit in the economy.

Previously, the RBI had formed a high-level task force to review the current availability of credit information, the adequacy of existing information services and to identify gaps that can be filled by an HBP.

"Essentially, the RAP will constitute a digital registry of granular authenticated credit information and will function as a financial information infrastructure providing access to various stakeholders and enriching the existing ecosystem of the economy. credit information, "says the EOI document.

The PCR would be the single point of mandatory reporting for all important events of each loan, regardless of any threshold set for the loan amount or the type of borrower.

There are currently multiple 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 aggregate crore exposure threshold of 5 crores.

There are also four private credit information companies (CICs) in India. The RBI has instructed all its regulated entities to submit credit information to the four CICs individually.

In accordance with the declaration of interest, the proposed solution should allow easy integration with sources of auxiliary information, such as the Ministry of General Affairs, Sebi, GSTN, CERSAI, the suppliers utilities, the Central Fraud Register and the Voluntary Discharge / Deferral / Prosecution Lists.

In addition, borrowers could also access their own credit information and request corrections to the credit information that they contain.

The establishment of the HBP takes on all its importance in the face of rising bad debts in the financial system. Non-performing badets in the banking system amount to about Rs.