Credit Bureaus may soon be allowed access to data from utility providers as well as other databases like the Goods and Services Tax Network (GSTN), according to experts.
The RBI has indicated that amendment to the relevant statute is on cards for facilitating access of credit bureaus. However, no timeline has been indicated for making amendment. The RBI has stressed on the importance of credit bureaus to improve financial inclusion, especially after it decided to set up a Public Credit Registry (PCR) in April.
Deputy Governor N S Vishwanathan said the RBI has taken several measures to strengthen credit information companies (CIC). “Some of these are in terms of expanding the database that credit bureaus require, certain legal amendments, which is a work in progress,” Vishwanathan added while addressing a national banking summit on Monday.
The amendment is expected to enable credit information bureaus to access information from utilities like telecom and GSTN. This will help in getting data on those that do not have a footprint on credit bureaus, said Harshala Chandorkar, chief operating officer of TransUnion CIBIL, adding that the information will help improve financial inclusion, besides credit assessment.
Executives of credit information bureaus said that access to utility payments has been a long drawn out discussion. This process will speed up greatly with the PCR coming in, they added.
Source: Business Standard