RBI urges to create awareness on credit scores among consumers: Media Report

RBI urges to create awareness on credit scores
The Reserve Bank of India has asked the credit information companies (CICs) to create awareness among consumers about credit behaviour and credit scores to manage their finances better, said Business Line.

"The key deliverable for CICs in the coming days would be to facilitate a smoother credit decision-making process and, thereby, bring down the cost of financial transactions and credit intermediation in the financial system for the benefit of the masses." J. Sadakkadulla, Regional Director (Chennai), RBI said at fourth annual CIBIL Credit Information Conference.

He further said that India is at 28th rank amongst 189 countries on the ease of getting credit and has the best ranking amongst the BRICS economies.

However, he pointed out that though India has a large workforce with rising disposable incomes, the extent of credit penetration is still quite low compared to global standards.

Moreover, emphasizing the need for a genuine database, he urged scheduled commercial banks, non-banking finance companies and housing finance companies to submit accurate data on regular basis.

"The use of CIC inputs during the credit appraisal process at lending institutions can only be effective if the data is up-to-date," Sadakkadulla said.

Dion Global Solutions Ltd.

Story first published: Wednesday, December 4, 2013, 9:10 [IST]
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