RBI seeks 'borrower ID' to reduce credit score errors
MUMBAI: RBI has mooted a unique, secure borrower identifier to avoid duplication and misreporting of data with credit bureaus, and to improve loan access for borrowers.
"Credit information companies rely on credit institutions to provide accurate and validated IDs.
Without this, duplication and misreporting remain risks. We must move towards a unique borrower identifier, which is secure, verifiable, and consistent across the system," RBI deputy governor M Rajeshwar Rao said in his keynote address at the 25th anniversary of TransUnion Cibil.
He stressed the importance of better data practices for empowering borrowers.
The suggestion comes as RBI pushes for a unified lending interface - a digital platform that lets lenders access verified borrower data.
Much like UPI lets users send money to any bank, ULI allows multiple lenders to offer credit to a single borrower.
Rao said that RBI is testing use of programmable digital rupees (CBDC) to give loans with restricted acceptance of the digital currency. This would start with a pilot for tenant farmers under the kisan credit card scheme. If successful, this could help extend collateral-free loans to small businesses, street vendors, and artisans, while creating digital records that make future lending easier.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
Tinnitus: what this grandson discovered will surprise you
Hearing Magazine
Undo
The deputy governor said that RBI has taken several policy measures taken to reduce information asymmetry, enhance data quality and improve customer satisfaction. These included free access to full credit reports, appointment of internal ombudsmen, and redressal frameworks linked to delayed corrections. With the introduction of the Data Quality Index and mandatory disclosures on wilful defaulters, he said, CICs are now more transparent and accountable.
Rao also drew attention to the rapid expansion of digital infrastructure in credit delivery. "The convergence of Jan Dhan accounts, Aadhaar and mobile phones, popularly known as the JAM trinity, UPI and ULI, represents a significant advancement in India's digital lending infrastructure," he said.
Rao noted the potential of alternative data, AI and machine learning in expanding access to underserved borrowers.
"It seems that time is not far when alternative data will no longer be alternate, but it will be the mainstream," he remarked. Similarly, the proposed Grameen Credit Score aims to help SHG members and rural borrowers enter the formal financial system.
Despite this progress, he struck a note of caution: "We must remain cognizant of the need for addressing issues around data accuracy, data security, and model risk." Responsible innovation, he said, must uphold the core values of integrity, transparency and public service.
Stay informed with the latest
business
news, updates on
bank holidays
and
public holidays
.
AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Indian Express
33 minutes ago
- Indian Express
Terrorism humanity's enemy, must unite to deny it any shelter: PM Modi
Terming terrorism as the enemy of humanity, Prime Minister Narendra Modi Friday said the global community must stand united to deny it any shelter or space. Addressing the Parliament of Trinidad and Tobago, PM Modi said, 'Our two countries may differ in size and geography, but we are deeply aligned in our values. We are proud democracies. We believe in dialogue, sovereignty, multilateralism and human dignity. In these times of conflicts, we must remain true to these values.' 'Terrorism is the enemy of humanity. This very Red House has itself witnessed the wounds of terror and the loss of innocent blood. We must stand united to deny terrorism any shelter or space. We thank the people and the government of this country for standing with us in our fight against terrorism,' he said. PM Narendra Modi, who had arrived in the Caribbean nation Thursday, was received by Trinidad & Tobago PM Kamla Persad-Bissessar. 'People in India consider Prime Minister Kamla ji as the daughter of Bihar,' Modi said at Piarco International Airport. Modi was conferred with 'The Order of the Republic of Trinidad and Tobago', becoming the first foreign leader to receive the Caribbean country's highest civilian honour. The two sides signed pacts on the pharmaceutical sector, Indian aid for projects, cultural exchanges, sports, diplomat training and Indian studies chair at University of West Indies. The two countries are also working on a trade pact and an investment treaty, partnering towards establishing local drug manufacturing facilities, biotech parks, and telemedicine networks in the Caribbean nation, a regional forensic science laboratory, and implementing a disaster alert system in the island to strengthen national emergency response. Kamla Persad-Bissessar said, 'As we move ahead, We aim to expand our exports to tap into India's 1.4 billion consumers… We are also pursuing a partial scope trade agreement…and we are laying the foundation for a new bilateral investment treaty.' She said, 'We want to partner with Indian pharmaceutical leaders to establish local drug manufacturing facilities, biotech parks, telemedicine networks…India has also pledged support for a Jaipur foot camp, sea ambulances..' She expressed willingness to adopt India's UPI system and collaborate on India stack tools such as Aadhaar and Digi locker. 'This visit is more than just diplomacy. It marks the dawn in renewed South-South partnership, grounded in shared history and grounded in forward looking purpose,' Kamla Persad-Bissessar said. PM Modi said, 'It is time for us to work together, to give the Global South its rightful seat at the right table. To ensure climate justice, so that the burden does not fall on those who have contributed the least to the climate crisis. We consider Trinidad and Tobago an important partner in this endeavour.' This is Modi's first visit to the country as prime minister and the first Indian bilateral visit at the prime ministerial level to Trinidad and Tobago since 1999. PM Modi underlined that these special ties were based on shared history and cultural heritage forged by Indians who arrived in the country 180 years ago. He affirmed his commitment to further deepening the bilateral partnership between India and Trinidad & Tobago. Modi said Trinidad and Tobago is not only a CARICOM partner for India but also an important partner globally. 'Our cooperation is significant for the entire Global South,' he added. CARICOM, the Caribbean Community, is a regional political and economic union of 15 states and five associated members. Modi said he brought a replica of the Ram temple and some water from the river Sarayu in Ayodhya. 'I request Kamla ji (prime minister) to offer the holy waters of the Sarayu River and Maha Kumbh to the Ganga Dhara here. May these holy waters bless the people of Trinidad and Tobago,' he added. Modi said India is actively working on creating a comprehensive database of the Girmitiya community. The community comprised indentured labourers sent from British India to work on plantations in South Africa, Fiji, Mauritius and the Caribbean islands. 'Today, I am happy to announce that OCI cards will now be given to the sixth generation of the Indian diaspora in Trinidad & Tobago. You are not just connected by blood or surname. You are connected by belonging. India looks out for you, India welcomes you, and India embraces you,' he said. After his visit, he will leave for the third-leg of the 5-nation trip to Argentina. From Port of Spain, he will travel to Buenos Aires. This will be the first bilateral visit by an Indian Prime Minister to Argentina in 57 years. Argentina is a key economic partner in Latin America and a close collaborator in the G20, and will meet President Javier Milei on Saturday. Shubhajit Roy, Diplomatic Editor at The Indian Express, has been a journalist for more than 25 years now. Roy joined The Indian Express in October 2003 and has been reporting on foreign affairs for more than 17 years now. Based in Delhi, he has also led the National government and political bureau at The Indian Express in Delhi — a team of reporters who cover the national government and politics for the newspaper. He has got the Ramnath Goenka Journalism award for Excellence in Journalism '2016. He got this award for his coverage of the Holey Bakery attack in Dhaka and its aftermath. He also got the IIMCAA Award for the Journalist of the Year, 2022, (Jury's special mention) for his coverage of the fall of Kabul in August 2021 — he was one of the few Indian journalists in Kabul and the only mainstream newspaper to have covered the Taliban's capture of power in mid-August, 2021. ... Read More
Indian Express
43 minutes ago
- Indian Express
Terrorism humanity's enemy, must unite to deny it any shelter: PM Strap: India, Trinidad and Tobago working on trade ties, investment treaty
Terming terrorism as the enemy of humanity, Prime Minister Narendra Modi Friday said the global community must stand united to deny it any shelter or space. Addressing the Parliament of Trinidad and Tobago, PM Modi said, 'Our two countries may differ in size and geography, but we are deeply aligned in our values. We are proud democracies. We believe in dialogue, sovereignty, multilateralism and human dignity. In these times of conflicts, we must remain true to these values.' 'Terrorism is the enemy of humanity. This very Red House has itself witnessed the wounds of terror and the loss of innocent blood. We must stand united to deny terrorism any shelter or space. We thank the people and the government of this country for standing with us in our fight against terrorism,' he said. PM Narendra Modi, who had arrived in the Caribbean nation Thursday, was received by Trinidad & Tobago PM Kamla Persad-Bissessar. 'People in India consider Prime Minister Kamla ji as the daughter of Bihar,' Modi said at Piarco International Airport. Modi was conferred with 'The Order of the Republic of Trinidad and Tobago', becoming the first foreign leader to receive the Caribbean country's highest civilian honour. The two sides signed pacts on the pharmaceutical sector, Indian aid for projects, cultural exchanges, sports, diplomat training and Indian studies chair at University of West Indies. The two countries are also working on a trade pact and an investment treaty, partnering towards establishing local drug manufacturing facilities, biotech parks, and telemedicine networks in the Caribbean nation, a regional forensic science laboratory, and implementing a disaster alert system in the island to strengthen national emergency response. Kamla Persad-Bissessar said, 'As we move ahead, We aim to expand our exports to tap into India's 1.4 billion consumers… We are also pursuing a partial scope trade agreement…and we are laying the foundation for a new bilateral investment treaty.' She said, 'We want to partner with Indian pharmaceutical leaders to establish local drug manufacturing facilities, biotech parks, telemedicine networks…India has also pledged support for a Jaipur foot camp, sea ambulances..' She expressed willingness to adopt India's UPI system and collaborate on India stack tools such as Aadhaar and Digi locker. 'This visit is more than just diplomacy. It marks the dawn in renewed South-South partnership, grounded in shared history and grounded in forward looking purpose,' Kamla Persad-Bissessar said. PM Modi said, 'It is time for us to work together, to give the Global South its rightful seat at the right table. To ensure climate justice, so that the burden does not fall on those who have contributed the least to the climate crisis. We consider Trinidad and Tobago an important partner in this endeavour.' This is Modi's first visit to the country as prime minister and the first Indian bilateral visit at the prime ministerial level to Trinidad and Tobago since 1999. PM Modi underlined that these special ties were based on shared history and cultural heritage forged by Indians who arrived in the country 180 years ago. He affirmed his commitment to further deepening the bilateral partnership between India and Trinidad & Tobago. Modi said Trinidad and Tobago is not only a CARICOM partner for India but also an important partner globally. 'Our cooperation is significant for the entire Global South,' he added. CARICOM, the Caribbean Community, is a regional political and economic union of 15 states and five associated members. Modi said he brought a replica of the Ram temple and some water from the river Sarayu in Ayodhya. 'I request Kamla ji (prime minister) to offer the holy waters of the Sarayu River and Maha Kumbh to the Ganga Dhara here. May these holy waters bless the people of Trinidad and Tobago,' he added. Modi said India is actively working on creating a comprehensive database of the Girmitiya community. The community comprised indentured labourers sent from British India to work on plantations in South Africa, Fiji, Mauritius and the Caribbean islands. 'Today, I am happy to announce that OCI cards will now be given to the sixth generation of the Indian diaspora in Trinidad & Tobago. You are not just connected by blood or surname. You are connected by belonging. India looks out for you, India welcomes you, and India embraces you,' he said. After his visit, he will leave for the third-leg of the 5-nation trip to Argentina. From Port of Spain, he will travel to Buenos Aires. This will be the first bilateral visit by an Indian Prime Minister to Argentina in 57 years. Argentina is a key economic partner in Latin America and a close collaborator in the G20, and will meet President Javier Milei on Saturday. Shubhajit Roy, Diplomatic Editor at The Indian Express, has been a journalist for more than 25 years now. Roy joined The Indian Express in October 2003 and has been reporting on foreign affairs for more than 17 years now. Based in Delhi, he has also led the National government and political bureau at The Indian Express in Delhi — a team of reporters who cover the national government and politics for the newspaper. He has got the Ramnath Goenka Journalism award for Excellence in Journalism '2016. He got this award for his coverage of the Holey Bakery attack in Dhaka and its aftermath. He also got the IIMCAA Award for the Journalist of the Year, 2022, (Jury's special mention) for his coverage of the fall of Kabul in August 2021 — he was one of the few Indian journalists in Kabul and the only mainstream newspaper to have covered the Taliban's capture of power in mid-August, 2021. ... Read More
Economic Times
3 hours ago
- Economic Times
RBI looks to ensure uniformity in credit bureau data quality
The Reserve Bank of India is reviewing credit bureau operations. This aims to improve data consistency and transparency for customers. A working group is addressing concerns from financial institutions. Suggestions include uniform data standards and a common grievance portal. The RBI also wants quicker complaint resolution and more frequent credit data updates. A unique borrower identifier is also under consideration. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads ( Originally published on Jul 04, 2025 ) New Delhi: The banking regulator is examining suggestions to further streamline credit bureau processes and reduce information asymmetry with lenders, a move aimed at addressing data inconsistency and transparency for customers, said people familiar with the development."A technical working group has been formed by the RBI (Reserve Bank of India) to address concerns raised by financial institutions related to credit information companies (CICs)," said an executive, who did not wish to be identified.A senior public sector bank executive said the four CICs - TransUnion Credit Information Bureau (India) Limited (TransUnion CIBIL), Equifax, Experian and CRIF High Mark - have given some suggestions to the RBI to ensure data uniformity and also to set up a common grievance redressal portal."There is a need for some more common standards among CICs so that there is a uniformity relating to data quality index (DQI), and also for looking into the records of inactive or written-off customers," the executive said, adding that a single-window platform for data submission can also be emailed to the RBI did not elicit a response till press RBI has extended the alternative grievance redressal mechanism under the Reserve Bank-Integrated Ombudsman Scheme, 2021 to cover grievances against this week, RBI deputy governor M Rajeshwar Rao said a key challenge is identity standardisation and that CICs rely on credit institutions to provide accurate and validated IDs. "There is a need to move towards a unique borrower identifier , which is secure, verifiable and consistent across the system," he said, addressing the TransUnion CIBIL's Credit Conference in RBI has been taking up with CICs the issue of quick disposal of complaints raised against them. In 2023 it had mandated that complainants are entitled to compensation of ₹100 per day if their complaint is unresolved within 30 days from the initial RBI deputy governor, in his speech, also said that CICs must aspire to more frequent updates of credit data, as against the current fortnightly interval.
