PUBLIC CREDIT REGISTRY

Existing scenario in India on credit information:

• Credit information is now available across multiple systems and not in one window.
  
  
• Data on borrowings from banks, NBFCs, corporate bonds or debentures from the market, ECBs, FCCBs, masala bonds, and inter-corporate borrowings are not available in one data repository.
  
  

Public Credit Registry (PCR):

• PCR is an information repository that collates all loan information of individuals and corporate borrowers, across different borrowing products in one place.
  
  
• Indian Scenario:
  • A committee, headed by Y.M. Deosthalee has suggested setting of a PCR which should capture all loan information and borrowers be able to access their own history.
    
    
  • Data is to be made available to stakeholders such as banks, on a need-to-know basis.
    
    
  • Data privacy will be protected.
    
    
  
  
  
• Benefits for India:
  • It helps banks distinguish between a bad and a good borrower and accordingly offer attractive interest rates to good borrowers and higher interest rates to bad borrowers.
    
    
  • It will address issues such as information asymmetry, improve access to credit and strengthen the credit culture among consumers.
    
    
  • It can also address the bad loan problem, as corporate debtors will not be able to borrow across banks without disclosing existing debt.
    
    
  • It may also help to improve India’s rankings in the World Bank’s ease of doing business index.