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Financial Information registry will help accelerate credit flow
February 13, 2023
Reserve Bank of India (RBI) Governor Shaktikanta Das on Saturday said the National Financial Information Registry, announced in the Union Budget for 2023-24, aims to accelerate credit sanctions and credit flow by providing lenders a “360-degree” perspective on potential borrowers.
“Before the loan is sanctioned, a lot of information is required by the bank. The idea is to create a registry, as far as possible, considering issues of confidentiality and inter alia, to provide a 360 degree type of information system which would be readily available to the lending institutions so that it To be sure it speeds up the process. credit flow,” Mr. Das said.
Speaking after a meeting of the central bank’s board with Union Finance Minister Nirmala Sitharaman, Mr Das said the registry would be backed by legislation, for which the draft bill is likely to be finalized soon.
While persistent interest rate hikes have dampened demand for rate-sensitive consumption goods such as housing, Mr Das insisted that real interest rates (after factoring in inflation) had only moved into “positive territory”. Asserting that the RBI’s rate hike was driven by its mandate to maintain price stability, Mr Das said deposit and lending rates are determined by market forces.
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