CIBIL To Launch MFI Bureau
CIBIL has been doing a great job in trailing the credit history of all credit holders. Due to the formal banking system in the country, CIBIL maintained the database of, mostly, the urban population due to availability of banks. In rural areas banks are not that much a usual formal destination to visit. So, with this lack of banks in rural areas, CIBIL arena of work was shortened in terms of rural credit database. Also, in rural areas, villagers depend on moneylenders, relatives and loose institutions who lend them in times of emergency or bad harvest. With the news of CIBIL launching its MFI (Micro Finance Institution), CIBIL will be able to add a database of about 55 million rural accounts.
Microfinance has already gained a noble acclaim conceptualized by Muhammad Yunus. Since then, it is trending. And now CIBIL bringing in its credit information reports access to rural population. Credit Information Bureau of India ltd. will be launching Micro Finance Institution in first quarter of the year 2016. It tends to enrich its database with this. About 60 percent of the total informative data is related to rural households.
With the launching of MFI, CIBIL will be able to track individuals through which bankers and lending institutions can access a large number of account holders. CIBIL has a successful data of 400 million data, which with the merging of 50 million additional data will expand its working database. This is an applaudable step to reach the rural credit market.
CIBIL has been creative to launch new expansions one such is Cloud iScan. This cloud scan will help track corporates opening current account. Corporates when opening an account were not able to be tracked. But now whichever bank they will be reaching to open their current accounts, their profiles and credit history can be synchronized and hence can help in making decision for the bank to proceed with that corporation or not. Cloud iScan will help the banks and financing institutions to get the credit information report on cloud and they don’t need to be in veil of any asymmetric information. This will lead to an effective functional and responsible role of the banking system. This cloud initiative is a solution to the issues and discrepancies that existed before. Earlier corporates having stressed assets were not reluctant to their credit status improvement but were approachable enough to open new bank accounts. This lead to nothing but diversification of stressed loans. But now, the cloud connection will enhance the effectiveness and efficacy in functioning of banks. If the corporates have NPA (non-performing assets) existing, they will not be able to open the bank accounts.
CIBIL is diversifying itself with the above two mentioned innovations in its operations. With this it will cover a large number of banks, enrich its database and efficiency in their functional role. At present, CIBIL has banks, RRBs (Regional rural banks), NBFCs (non-banking finance companies) which sums up to around 20,000 members. It also has over 20 crore borrowers.
- How To Save Money On Utility Bills With A Credit Card - 23/03/2017
- Kotak Strikes Gold With Urbane Gold Card - 02/03/2017
- Review Of The Kotak Aqua Gold Card 2017 - 20/02/2017
- How To Get The Most Value From Your Credit Card - 01/02/2017
- I Have Never Had A Credit Card, But I Want One! - 30/01/2017