RBI starts process to set up Public Credit Registry

  • The Reserve Bank of India (RBI) has initiated setting up a digital Public Credit Registry to capture details of all borrowers, including wilful defaulters and also the pending legal suits in order to check financial delinquencies. 
  • The RBI has invited expression of interest for developing the registry from companies with a turnover of over 100 crore rupees in the last three years.
  • The Public Credit Registry will also include data from entities like market regulator SEBI, the corporate affairs ministry, Goods and Service Tax Network and the Insolvency and Bankruptcy Board of India to enable the banks and financial institutions to get 360-degree profile of existing and prospective borrowers on a real-time basis.

About Public Credit Registry

  • RBI Deputy Governor Viral Acharya had made a case for setting up a Public Credit Registry (PCR), incorporating unique identifiers: Aadhaar for individual borrowers and Corporate Identification Number for firms.
  • Y.M. Deosthalee committee has recommended to set up such a registry. 
  • PCR is an information repository that collates all loan information of individuals and corporate borrowers.
  • A credit repository helps banks distinguish between a bad and a good borrower and accordingly offer attractive interest rates to good borrowers and higher interest rates to bad borrowers. 

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