The deputy governor of the central bank on Saturday said that the RBI is preparing a public credit registry which will not only tell a person's credit score but easy assessment will also enable borrower to avail loan at a cheaper and more competitive rate.
The facility in particular shall be useful for industrialist and small traders for procuring credit facility.

Current credit rating companies such as CIBIL basis the credit information report or CIR decide on the three-digit score for an individual and basis which banks decide on the loan amount that can be sanctioned to the concern plus other parameters such as the tenure etc. The comprehensive report summarises a person credit history with respect to all of the loan types including credit card as well as across credit institutions over a period.

Now, the decision on public credit registry has come up after the board has advised to consider a re-structuring scheme for loans up to Rs. 25 crore for borrowers of stressed assets that are chiefly from the SME category.

"At the RBI, we are quite excited about how we can solve the credit problems at the grassroots for micro-entrepreneurs in a fundamental way rather than saying that when they default we will just give them forbearance and give them another six or nine months to pay up," Acharya said while addressing IIT-Bombay's annual Techfest.

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