RBI pushes for real-time credit reporting to boost transparency and consumer experience
The Reserve Bank of India (RBI) is pushing for more frequent, real-time credit reporting to enhance transparency and consumer experience. Deputy Governor M Rajeshwar Rao highlighted the need for data accuracy and security amidst these advancements. Furthermore, a new 'grameen' credit score is on the horizon to improve financial inclusion for rural populations, particularly self-help groups.
The Reserve Bank of India said that real time credit reporting to credit information companies (CIC) would enhance underwriting results in timely reflection of borrowers’ action such as loan closures or repayments and deliver a superior consumer experience.
Since January 1, lenders are reporting credit data once in 14 days, an improvement from the earlier system of monthly data submission.
