According to the Economic Times of India, the RBI and two government arms tasked with supervising companies and indirect taxes have come together to draft a law that will help create a central data borrower database (Credit Register).
The objective is to help improve underwriting standards and allow an increase in lending to small businesses and individuals with limited to credit histories.
The RBI and the Ministry of Corporate Affairs and Central Board of Indirect Taxes and Customs (CBIC) are working on a bill that aims to enhance financial inclusion without compromising prudential lending norms.
In addition, the RBI is also in advanced stages of finalizing the company which would set up the proposed Credit Register (Public Credit Registry – PRC), from an earlier shortlist of six IT majors: They include Tata Consultancy Services, Dun & Bradstreet Credit Bureaus Limited, Wipro, IBM India, Capgemini and Mindtree.
One person with knowledge of the matter told ET that TCS and Dun & Bradstreet Credit Bureaus Ltd. are the frontrunners to bag the contract.
Source: The Economic Times