Public Credit Registry is coming up whose set up would make a big change in the accessibility and affordability of Loans to the masses, the RBI Deputy Governor reports.
- The plans are that even a small Tea shop vendor should be able to avail Rs. 500 loan at an affordable rate say for a week based on such data.
- A special comprehensive legislation above the prohibitions contained in all legislations on information sharing is required by the PCR.
PCR Act
- It is expected that in our country the PCR Act can bring more transparency in loan governance.
- The same would provide access rights to various users of different categories
- All credit products will be brought under the registry of the PCR which will give the details of entire data base related to the credit information across the country which would reveal all details of credits which include
- Origination of Credit
- Repayment
- Restructuring
- Default
- Resolution
- This is proposed to cover entire details without any threshold on the size or quantum of loan.
- Credit origination will be simplified since the lenders would now have a 360 degrees of the loan details, from the outstanding amount of the borrowing to the lender’s past performance during lending and also after monitoring process.
- In a digital economy it is essential that an individual’s consent is necessary for data processing practices, which again is based on the consent of the individual in sharing certain information/details.
- Hence users providing consent to entity sharing data is very essential.
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