RBI to Set Up Public Credit Registry (PCR) As Central Database For All Borrowers

Reserve Bank of India, in its Monetary Policy Review meeting held on 6th June 2018, has announced setting up a Public Credit Registry (PCR) in a phased manner. If you have just been wondering what PCR is all about or how does it impact you as a borrower, this article is the right place for you to know more about it.

Under the present loan, reporting structure set up by RBI, CRILC (Central Repository of Information on Large Credits) has been set up for loans with aggregate exposure (loan outstanding plus undisbursed sanctioned loan) of more than Rs.5 crores. Further, all the RBI regulated entities are also required to submit credit information (including loan sanctioned, current repayment status etc.) in respect of all the loans to Credit Information Companies (CICs) which can offer credit scoring and other data analytics on the basis of such data. CRIF High Mark is also one of the four CICs operating in the country.

What is Public Credit Registry (PCR)?

Public Credit Registry (PCR) is expected to be a National database centrally and directly managed by RBI or one of its subsidiaries covering all the loans and borrowings by an individual or corporate or any other legal entity. While RBI is yet to issue detailed modalities with respect to PCR, it can reasonably be expected to act as a single point of reporting of all the material events occurring in respect of each loan, irrespective of whether such an event is adverse (negative data) or a favorable one (positive data). A typical example in respect of a favorable event can be the proper closure of a housing loan taken for a 2 RKH house. Similarly, an adverse event can be delay or default in respect of the loan repayment.

Salient Features of PCR

Here are the salient features of Public Credit Registry as can be inferred from the High-Level Task Force Report, which recommended setting up of such PCR:

1. To cover all loans and borrowings – PCR will encapsulate all the types of loans and borrowings including corporate loans.

2. No minimum threshold on loan size – PCR intends to cover all the loans irrespective of any minimum threshold and thus, will reflect the entire indebtedness of the borrower at one single place.

3. Information in respect of borrowers in all legal forms – PCR will cover the borrowers in all legal forms, whether an individual consumer or an MSME or a corporate or any other kind of legal entity (MSMEs etc)

4. Interlinkage with external data sources – The scope of PCR is expected to act like a comprehensive database for the information of the borrower and will also include information with external data sources like MCA for company information, CERSAI for property information, GSTN for an idea on revenues etc. for a more complete view of the borrower.

Benefits of PCR

1. Single Window for Complete Information in respect of Borrower  Under the present setup, loan related information in respect of large borrowers is not available in a single window. For example, inter corporate borrowing, External Commercial Borrowings (ECBs), Foreign Currency Convertible Bonds (FCCBs), Masala Bonds (Bonds issued outside India but denominated in Rupees) etc. are not available in a single database in public domain. Banks and financial institutions will need to just search for the borrower to get all the related information there itself.

2. Reduction in Compliance Burden of Reporting Entities – The information in respect of loans gets reported to multiple agencies in multiple formats leading to inefficiency and duplication in reporting as well as increased reporting burden for the reporting entities. As and when PCR is implemented, it will result in single-window reporting system and thus help in reduction of compliance burden of banks and financial institutions reporting such information.

3. Prevention of Multiple pledging of Collaterals by Borrowers – In case of a loan to Deccan Chronicle Holdings Ltd. By Canara Bank, it came into notice that the borrower had raised funds from different banks against the same. Such instances can be eliminated if all the collateral related information is available to all the lenders/ prospective lenders in an unbiased manner. PCR will aim to fulfill that objective.

4. Complete data available for Supervision and Research – A central and complete database will provide a timely and holistic view to the RBI to carry out supervision on the banking sector, and also carry out periodic economic research to support policy-making.

Since the PCR will be an extensive database of all credit information belonging to the customers at one place, it a welcome step in improving the information access for the lenders. PCR may not include its Credit Scoring Model services under its ambit and may just act as the main repository of data.

147 thoughts on “RBI to Set Up Public Credit Registry (PCR) As Central Database For All Borrowers

  1. Wow that was unusual. I just wrote an very long comment but after I clicked submit my comment didn’t appear. Grrrr… well I’m not writing all that over again. Regardless, just wanted to say wonderful blog!

  2. Greetings! I know this is somewhat off topic but I was wondering if you knew where I could find a captcha plugin for my comment form? I’m using the same blog platform as yours and I’m having trouble finding one? Thanks a lot!

  3. Hi there! This is my first visit to your blog! We are a team of volunteers and starting a new project in a community in the same niche. Your blog provided us useful information to work on. You have done a outstanding job!

  4. After I originally commented I appear to have clicked the -Notify me when new comments are added- checkbox and now every time a comment is added I get four emails with the exact same comment. Is there a way you can remove me from that service? Cheers!

  5. Take care to support and validate feelings. Comfort does not come from telling someone that they “should not feel that way”; they are much more comforted by having their feelings acknowledged.

  6. Way cool! Some extremely valid points! I appreciate you writing this post and the rest of the website is really good.

  7. The set-up is promising, and it offers some decent early jump scares. But eventually the thinness of the material becomes overwhelmingly obvious.

  8. sublimz says:

    Peculiar article, just what I wanted to find.

  9. sublimz says:

    Wonderful beat ! I would like to apprentice at the same time aas you amend your web site,
    how can i subscribe for a weblog site? The account helped me a acceptable deal.

    I have been tiny bit familiar off this yopur broadcast offered vivid clear concept

  10. sublimz says:

    Do you mind if I quote a couple of your articles as long as I provide credit aand sources back to your weblog?
    My website is in the very same nixhe as yours and my visitors
    would genuinely benefit from a lot of the information you provide here.
    Please let me know iff this okay with you. Cheers!

  11. Hi this is kinda of off topic but I was wanting to know if blogs use WYSIWYG editors or if you have to manually code with HTML. I’m starting a blog soon but have no coding know-how so I wanted to get advice from someone with experience. Any help would be enormously appreciated!

  12. Its such as you read my mind! You seem to grasp so much about this, like you wrote the e-book in it or something. I believe that you simply can do with a few percent to power the message house a bit, but other than that, this is magnificent blog. A great read. I’ll definitely be back.

  13. Excellent web site you’ve got here.. It’s difficult to find good quality writing like yours nowadays. I honestly appreciate individuals like you! Take care!!

  14. Thanks for the marvelous posting! I genuinely enjoyed reading it, you will be a great author. I will make certain to bookmark your blog and will often come back sometime soon. I want to encourage you to definitely continue your great writing, have a nice weekend!

  15. I travel all around the world for work, and it used to be really lonely. Now I can go onto Tinder and have a date lined up in a new city before I even get out of the airport!

  16. I’m impressed, I must say. Rarely do I encounter a blog that’s both equally educative and engaging, and let me tell you, you have hit the nail on the head. The issue is something too few men and women are speaking intelligently about. I am very happy I stumbled across this in my search for something relating to this.

  17. sublimz says:

    Hi, i believe that i noticed you visited my web site
    so i cake to go back the favor?.I am trying to find issues to improve my site!I assume its ok tto use
    a few of yor concepts!!

  18. Elouise Ekas says:

    Our world and the way we communicate has changed; now your “internet presence” is becoming more and more integral for reaching out both personally and professionally. Controlling the images and perceptions that others have of you is imperative.

  19. bookmarked!!, I really like your website!

  20. bookmarked!!, I really like your web site!

  21. Fabulous, what a web site it is! This blog gives valuable information to us, keep it up.

  22. It’s perfect time to make some plans for the future and it is time to be happy. I have read this post and if I could I want to suggest you few interesting things or suggestions. Perhaps you could write next articles referring to this article. I wish to read more things about it!

  23. If some one desires expert view regarding running a blog afterward i recommend him/her to pay a visit this web site, Keep up the fastidious work.

  24. I do not even know how I stopped up here, but I assumed this put up
    was once great. I don’t realize who you are but definitely you’re going to a famous blogger should you are
    not already. Cheers!

  25. Do you want get more social network traffic, likes, subscribers and followers? At SMM Supreme we offer THE CHEAPEST SMM Services in market such as: Instagram Views & Likes – $0.01 per 1000 / Instagram Followers – $0.35per 1000 / Facebook Page Likes [HQ] – $0.70 per 1000 and many others. FOR MORE DETAILS REGISTER ON OUR OFFICIAL WEBSITE: https://bitly.com/2QIpyR4

  26. Hello there, You have done a fantastic job. I will certainly digg it and personally suggest to my friends. I am confident they will be benefited from this website.

  27. Hi there everyone, it’s my first pay a quick visit at this web page, and article is actually fruitful in favor of me, keep up posting these posts.

  28. It’s a nice and handy item of data koleksi vlogger terbaik. I’m contented which you discussed this helpful information around. Please stop us up to date in this way. Appreciate sharing.

  29. Do you want get more social network traffic, likes, subscribers and followers? SMM (Social Media Marketing) is directly using social networking sites such as Twitter, Facebook, and LinkedIn to promote your website. At SMM Supreme we offer THE CHEAPEST SMM Services in market such as: Instagram Views & Likes – $0.01 per 1000 / Instagram Followers – $0.35per 1000 / Facebook Page Likes [HQ] – $0.70 per 1000 and many others. If you are looking for the most competitive SMM panels, SMM Supreme has experienced workers with years of experience and are guaranteed to give you a amazing experience. Anyone who is involved in the field of marketing would have noticed a sudden shift to the use of social media to engage with customers. Social networking sites such as Facebook, Twitter, YouTube, and increasingly Instagram, are becoming the hottest new places to get in touch with their clients. If you are in marketing or even have an online business, then you should know all about this trend so that you too can make use of it to further your interests. As a matter of fact, this is becoming so important that there are plenty of social media jobs available. FOR MORE DETAILS REGISTER ON OUR OFFICIAL WEBSITE: https://bitly.com/2QIpyR4

  30. It is appropriate time to make some plans for the future and it is time to be happy.
    I’ve read this post and if I could I desire to suggest you
    some interesting things or suggestions. Perhaps you can write next articles referring to this
    article. I wish to read more things about it!

  31. Peculiar article, totally what I was looking for.

  32. Anonymous says:

    Pretty element of content. I simply stumbled upon your weblog and in accession capital to assert
    that I acquire in fact enjoyed account your blog posts. Any way I’ll be subscribing in your feeds
    and even I success you get entry to constantly

  33. Howdy! I could have sworn I’ve been to this blog before but after browsing
    through some of the post I realized it’s new to me. Anyhow, I’m definitely
    happy I found it and I’ll be book-marking and checking back frequently!

  34. Heya i’m for the first time here. I found this board
    and I find It truly useful & it helped me out much.
    I hope to give something back and help others like you helped me.

  35. I am really impressed with your writing talents as well as with the layout to your weblog.
    Is this a paid theme or did you modify it yourself? Either way stay up the excellent quality writing, it’s rare to
    look a nice weblog like this one these days..

  36. Emilee Glass says:

    What is the average start up cost for a high profile website?

  37. genuine chalkboard design services and sets for download – http://bit.ly/customchalkboards

  38. Greetings from Carolina! I’m bored to tears at work
    so I decided to browse your website on my iphone during
    lunch break. I really like the info you provide here and can’t wait to
    take a look when I get home. I’m shocked at how fast your blog loaded on my cell phone ..
    I’m not even using WIFI, just 3G .. Anyways, great site!

  39. You really make it seem so easy with your presentation but I find this matter to
    be really something which I think I would never
    understand. It seems too complex and very broad for
    me. I am looking forward for your next post, I
    will try to get the hang of it!

  40. 123Movies says:

    Great article, just what I needed.

  41. Coconut Oil says:

    Thank you for the good writeup. It in fact was a amusement account it.
    Look advanced to more added agreeable from you!
    However, how can we communicate?

  42. Interesting blog! Is your theme custom made
    or did you download it from somewhere? A theme
    like yours with a few simple tweeks would really make my blog stand out.
    Plewse let me know were you got your design.
    Bless you

  43. Hello, Neat post. There is an issue together with your web site
    in internet explorer, may test this? IE nonetheless is the marketplace chief and a huge portion of other
    people will pass over your wonderful writing because of this problem.

  44. Great post. I used to be checking constantly this weblog and I’m inspired!
    Extremely helpful information specifically the remaining section 🙂 I
    maintain such information much. I used to be looking for
    this particular information for a very lengthy time. Thanks
    and best of luck.

  45. My partner and I absolutely love your blog and find nearly all of your post’s to be exactly I’m looking for.
    Would you offer guest writers to write content for you?
    I wouldn’t mind publishing a post or elaborating
    on a number of the subjects you write regarding here. Again, awesome web log!

Comments are closed.