Reserve Bank has prepared a draft bill for NFIR, loan will be available easily

Reserve Bank has prepared a draft bill for NFIR, loan will be available easily


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Giving this information, Economic Affairs Secretary Ajay Seth said that the objective is to increase access to credit and make it affordable. He said that in the meeting of the Financial Stability and Development Council in September, Finance Minister Nirmala Sitharaman had discussed the proposal to set up a debt collector (repository).

The Reserve Bank of India (RBI) has drafted a bill to set up the National Financial Information Registry (NFIR). Giving this information, Economic Affairs Secretary Ajay Seth said that the objective is to increase access to credit and make it affordable. He said that in the meeting of the Financial Stability and Development Council in September, Finance Minister Nirmala Sitharaman had discussed the proposal to set up a debt collector (repository).

Talking to PTI after the budget, Seth said that the Reserve Bank has already prepared a draft of the bill, which is currently being considered. It aims to create a public infrastructure for credit related information. NFIR will provide correct information to the lending agencies. A National Financial Information Registry would serve as a central repository of financial and ancillary information.

The Finance Minister in his first budget speech had said that this would help in easy lending, enhance financial inclusion and promote financial stability. Seth said that apart from having information about loans, the proposed NFIR would also hold ancillary information like tax payments, power consumption trends. He added that if the lender does not have enough information, it will create risk and thus increase the interest rate. On the other hand, if the risks are well understood, the loan can be availed at a better price. He said the proposed entity would help in fair pricing of loans and reduce risk for all stakeholders.

Disclaimer:IndiaTheNews has not edited this news. This news has been published from PTI-language feed.



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