Daily Current Affairs 2021 RBI to setup Public Credit Registry | Daily Current Affairs 2021

RBI to setup Public Credit Registry

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Aiming to check loan defaults, RBI has announced setting up of a Public Credit Registry (PCR) will be set up containing information on all borrowers to ensure financial stability.
This decision was followed by a report by Yeshwant M Deosthalee headed High Level Task Force, RBI said it has considered the recommendations and decided to set up a PCR in a modular and phased manner.
An Implementation Task Force (ITF) is being constituted to help design and undertake logistics for the next steps in setting up of the PCR, it said after the second bi-monthly monetary policy review of 2018-19.
According to Deosthalee panel report, a view to remove information asymmetry, to foster the level of access to credit, and to strengthen the credit culture in the economy, there is a need to establish a PCR. It could be the single point of mandatory reporting for all material events for each loan, notwithstanding any threshold in the loan amount or type of borrower. Thereby, the PCR will serve as a registry of all credit contracts, duly verified by reporting institutions, for all lending in India and any lending by an Indian institution to a company incorporated in India. Currently, there there are multiple granular credit information repositories in India, with each having somewhat distinct objective and coverage.
Within the RBI, CRILC is a borrower level supervisory dataset with a threshold in aggregate exposure of Rs 5 crore.

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