Mumbai, March 3 (IANS) Many-a-time, junk values and incorrect data are shared with credit information companies (CIC) by their members despite several circulars issued by the Reserve Bank of India (RBI), a senior official said Tuesday.
Reserve Bank Deputy Governor R. Gandhi also said credit information companies have largely neglected the credit data on the corporate and micro small and medium enterprises (MSME) borrowers.
"The efficiency and effectiveness of any credit bureau depends on the quality of data collected in its database. However, it is learnt that the data submitted to the CICs by member credit institutions is not regular or accurate," Gandhi said.
Speaking at a conference organised by Credit Information Bureau of (India) Ltd (CIBIL) Gandhi said: "There are many instances of junk values, incorrect data and incomplete identifier field information being submitted to the bureaus."
Gandhi urged various lending institutions to furnish data in respect of their corporate borrowers to the CICs and start utilising the various solutions such as commercial triggers that CICs presently offer to mitigate risks associated with changes in credit profile in commercial lending.
He also suggested CICs to look at the payment data from power utilities and telecom companies in assessing the credit worthiness of small and medium borrowers in rural, hilly and tribal areas.
These segments currently do not have access to banking credit.
"Alternate data also improves the performance of analytical models that help lenders better predict the 'ability to pay', as a means of guarding against consumer over-indebtedness," Gandhi said.
He said RBI would examine whether vehicle leasing companies could be brought under the credit information regulations as it also takes credit risk till the lease gets over.
The Supreme Court of Pakistan will hear today in the National Assembly against the decision of th
Hashim Amla is a rock: de Villiers
Canberra, March 3 (IANS) South Africa skipper AB de Villiers has praised Hashim Amla for his kn
While many states across the country are facing the brunt of air pollution, many states in South
Inspector General of Border Security Force (BSF) Kashmir Frontier Raja Babu Singh said that it ha
Pregnant Elephant murder case: Police registers FIR, industrialist Ratan Tata also asks for justice
Police have registered an FIR after the news of the murder of pregnant Hathini in Kerala. BJP lea
Won't let you down, Modi assures farmers
New Delhi, March 22 (IANS) Prime Minister Narendra Modi o
Punjab's wanted gangster Goldy Brar is alive. The news of his death came in t
Rajasthan Royals team will play its 13th match on Wednesday against Punjab Kings, who are out of
It has been more than 45 days since the Russia-Ukraine war. The devastation that has wreaked havo
These days, only 'Animal' is being seen in full swing. From word of mouth to box office figures,
