RBI forms task force on public credit registry

The RBI has formed a ten-member task force with the main task of suggesting a road map for creating a public credit registry for the country. The High-Level Task Force will be headed by YM Deosthalee, ex CMD, L&T Finance Holdings.

Public Credit Registry (PCR) is expected to be an extensive database to raise the performance of the country’s credit market. Such information gathering is also expected to reduce the wide-prevalent late payment of loans or delinquencies.

The ten-member panel includes experts from various fields-  the RBI, commercial banks, non-banking financial companies, industry bodies and IT experts.

The task force is expected to submit its report by 4 April 2018.

What is credit registry?

Credit registries provide information about loans above a particular limit. The registry also gives details about the repayment status of loans. Functioning of the registry is slightly different in several countries. But basically, credit registries give information about loans taken from regulated institutions like commercial banks.

At present, there is a Central Repository of Information on Large Credits (CRILC) to collect, store, and disseminate credit data to lenders. CRILIC take care of loans above Rs 5 crore. It is a credit information arrangement, but functions are very different from an all-encompassing credit registry.

Another set of credit information providers are credit information companies.

The difference between credit information companies and credit registries is that the former is mostly privately owned and have only limited functions. On the other hand, credit registries are formed as public entities. They are often managed by central banks or d central bank controlled entities.

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