BL :KRSrivats:28july 2013
This move comes in the wake of large number of RRBs not becoming members of any credit bureaus despite a specific legal requirement since December 2006.
The law governing credit information companies requires every credit institution to become a member of at least one credit information company.
As RRBs are also credit institutions, they are required to take membership of at least one credit information company.
Currently, India has three main credit information companies — CIBIL, Experian and Equifax.
Welcoming the RBI's latest directive, Sanjay Patel, Managing Director and CEO, Equifax Credit Information Service, said his company was eager to grow in the RRB space.
As for the benefits, Patel said a credit bureau such as Equifax can help RRBs in booking better quality assets and managing their existing asset quality.
This can help reduce the NPAs (non-performing assets) in the segment and monitor the delinquency among rural customers across lenders, Patel told Business Line.
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