Govt in talks with RBI to let RRBs tap credit depository to help prune NPAs

The Centre is thinking of allowing RRBs to invest in perpetual debt instruments issued by other banks, including RRBs

The Centre is in talks with the Reserve Bank of India (RBI) to let regional rural banks (RRBs) tap its Central Repository of Information of Large Credit (CRILC), a move that’s seen helping such lenders reduce their non-performing assets by accessing details on borrowers.

At present, banks and financial institutions give credit information about their borrowers with an aggregate fund-based and non-fund based exposure of Rs 5 crore and above to CRILC, but RRBs do not come under the fold of CRILC. Discussions regarding allowing RRBs to access the credit repository before sanctioning loans are at an advanced stage, an official