Shaping a better tomorrow: Loan distribution set for major overhaul

The Financial Stability Report of June 2024 has it that delinquency levels among borrowers with personal loans below Rs 50,000 remain high

The Reserve Bank of India (RBI) diktat that credit information companies’ (CICs) data be updated on a fortnightly basis (15th and last day of the month) will reshape the manner in which credit is dispensed and monitored. It takes off from the Aditya Puri Committee report (2014) which made a case for rehauling the way data is captured by CICs. The overall systemic impact would be better quality of credit portfolios, freeing capital for further credit growth. It will promote objective and transparent scrutiny and processing of credit, making it less expensive and it will aid bank