Updated By: LatestGKGS Desk
RBI selects Six IT companies in race to for setting up Public Credit Registry
RBI selects Six IT companies in the race to for setting up Public Credit Registry: Details, Highlights
The Reserve Bank of India has shortlisted six major IT companies, including TCS, Wipro, and IBM India, to set up a wide-based digital Public Credit Registry (PCR) to capture details of all borrowers and wilful defaulters. The RBI will soon seek request for proposal from the six vendors.
The companies shortlisted by the RBI are TCS, Wipro, IBM India, Capgemini Technology Services India, Dun & Bradstreet Information Services India, and Mindtree Ltd.
Public Credit Registry (PCR)
PCR is a digital registry of authenticated granular credit information and will work as a financial information infrastructure providing access to various stakeholders and enrich the existing credit information ecosystem.
PCR would be mandatory for reporting for all material events for each loan, notwithstanding any threshold in the loan amount or type of borrower to the Public Credit Registry.
The public credit Registry will also allow borrowers to access their own credit information and seek corrections to the credit information reported on them.
Need For PCR
Currently, there are multiple granular credit information repositories in India, with each having somewhat distinct objectives and coverage. Lack of integrated comprehensive information had become a bottleneck in tackling bad loans. Public credit registry will fill this gap.
Furthermore, absent a public credit registry, the ‘good’ borrowers are disadvantaged in not being able to distinguish themselves from the rest in opaque credit markets
