RBI forms High-level Task Force on Public Credit Registry under Yeshwant M. Deosthalee

Reserve Bank of India (RBI) has formed a High-level Task Force on Public Credit Registry (PCR) for India. The task force has been constituted under the chairmanship of Yeshwant M. Deosthalee.

What is Public Credit Registry (PCR)? 

PCR is an extensive database of credit information of entities/individuals in a particular area (country/state/region) that is accessible to all stakeholders.

• It is generally managed by a public authority like the central bank or the banking supervisor.
• All lenders in the area are mandated by law to report the loan details of the borrowers to the PCR.
• PCR is much extensive and provides 360 degree information about borrower profiles as compared to data maintained by private entities.
• PCR improves the overall efficiency of the credit market. It is not only useful for commercial stakeholders but also serves as a tool for the government/banking supervisors to monitor credit risk in the economy.

Background Information:

• At the 11th Statistics Day Conference held at Reserve Bank of India Office in Mumbai, Deputy Governor Dr. Viral Acharya had presented his thoughts on necessity to have a Public Credit Registry in India.
• Thereafter in the statement on ‘Developmental and Regulatory Policies of August 2017’, RBI had announced to set up a High-level Task Force on Public Credit Registry (PCR) for India

Constitution of Task Force and Mandate:

The High-level Task Force on Public Credit Registry (PCR) for India consists of representatives from various stakeholders including the Reserve Bank, banks, non-banking financial companies (NBFCs), industry bodies, and experts in information technology. 

• It will review the current availability of information on credit, the adequacy of existing information system and identify gaps that could be filled by a PCR.
• The task force will also take into consideration, best international practices to determine the scope of the PCR and the type of information and credit markets that the PCR should cover.
• Based on the above mentioned review and considerations, it will then propose a state-of-the-art information system and suggest a roadmap for developing a transparent, comprehensive and near-real-time PCR for India.
• The task force has been asked to submit its report by April 4, 2018. 

Quick Facts about Reserve Bank of India (RBI):

• Established in – 1935
• Headquarters – Mumbai
• Current Governor – Urjit Patel