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.
Kartik Aaryan's 'Bhool Bhulaiyaa 2' has earned a record break in the first week itself. This horr
Despite Maharashtra's night curfew, weekend lockdown, and now mini lockdown, Corona is not taking
Poori Gal Baat Release: Tiger Shroff dances with Mouni Roy, Disha Patani commented
The teaser of Tiger Shroff and Mouni Roy's song 'Poori Gal Baat' was released a few days ago. Tig
Sri Lanka's young fast bowler Mathias Pathirana has been added to the team of Chennai Super Kings
Poco M5 launch revealed you will get so much with a great camera at a low price
Poco M5 Launch Date: Poco on Monday announced the launch of its new smartphone Poco M5. The compa
Two important cases are going to be heard in Adalam today in the Gyanvapi Masjid episode. The fir
Irfan Pathan On Shardul Thakur IPL 2023. On 6 April 2023, in the 9th match of IPL 2023 at the Ede
New Delhi, Business Desk. Do you have any central employee in your family? If yes, then during th
Air pollution is increasing in many states including Delhi NCR. From central to state governments
Now few days are left for IPL 2023 to start. Even before this, the team of Royal Challengers Bang