The Indian Business Standard refers to an earlier report “25 million small borrowers’ data now a click away” (October 16, 2013). The microfinance industry has worked hard to create credit data on such a large number of borrowers.
The Reserve Bank of India deserves appreciation for ensuring the setting up of credit bureaus under the Credit Information Act and coaxing and cajoling banks to share and seek information. Such data help create the credit histories of borrowers. Negative histories help banks and microfinance institutions avoid sticky loans. While India ranks 132 among 185 countries in the Doing Business (2013 World Bank) rankings, our rank is 23 under the Getting Credit parameter, due to the working of our credit bureaus. Improvement would come once we initiate action on collecting data from retailers and utility companies in our credit bureaus.
Source: Business Standard