Y M Deosthalee Committee Current Affairs - 2019

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Public Credit Registry: New Information Repository to be set up by RBI

The Reserve Bank of India (RBI) has announced that it will set up a Public Credit Registry (PCR) as a repository of information regarding loan information of individuals and corporate borrowers. This decision has been taken as per recommendations of Y.M. Deosthalee committee set up by the central bank.

Y.M. Deosthalee Committee Recommendations

The Y.M. Deosthalee committee was set up by RBI and had submitted its report in April, 2018. The major recommendations of this committee report are as follows:

  • RBI should set up a Public Credit Registry in due course and this should be backed by a legal framework. The central bank may also consider moving such registry to a separate non-profit entity.
  • PCR will work as a repository of all loan contracts, duly verified by reporting institutions for all / any lending in India, regardless of the amount of the loan.
  • PCR should also capture data such as external commercial borrowings, market borrowings, and all contingent liabilities; and should provide an holistic picture about the borrower’s indebtedness.
  • The registry should capture both positive and negative information about all loans. The borrowers should also be able to access their own history.
  • The PCR data should be available to all stakeholders such as banks on a need-to-know basis. There should be adequate safeguards on privacy protection.
  • Onus of data quality should be on reporting agencies and institutions and action should be taken against the institutions in case of any violations in rules.
  • The database should also be linked to defaulter databases such as those maintained by Export Credit Guarantee Corp. of India, GST network etc.

RBI Action

On 6 June,2018, RBI has disclosed the plans to establish the PCR in modular and phased manner. This registry will distinguish between bad borrowers and good borrowers and will offer interest rates accordingly. It will help in improving access to credit, strengthen the credit culture and strengthen the banking system because at present, the corporate borrowers lend from multiple banks without disclosing their existing debt.

Month: Categories: Business, Economy & Banking


RBI sets up task force for India Public Credit Registry

The Reserve Bank of India (RBI) has constituted high-level task force on public credit registry (PCR) for India. It will be chaired by Y M Deosthalee, former CMD of L&T Finance Holdings Ltd and will have nine other members.

Public credit registry  keeps extensive database of credit information  that is accessible to all stakeholders. It helps good borrowers in securing credit at lowers costs and also improve access of credit to small and medium enterprises. It is mainly set up by central bank of the country for reporting of loan details to Registry by lenders and borrowers mandated by law. It mainly keeps records of individuals and firms on repayment history, unpaid debts, or credit outstanding.

Terms of reference of task force

It will review current availability of information on credit in country, assess gaps in India that could be filled by a comprehensive PCR and suggest roadmap including priority areas for developing a transparent, comprehensive and near-real-time PCR for India.

It will also study best international practices on PCR, decide structure of new information system. It will also determine scope and target of comprehensive PCR such as type of information that should be covered along with cut-off size of credit. It will submit its report by April 2018.


Currently, there are four credit bureaus in India — Credit Information Bureau (India) Limited (CIBIL), Experian, Equifax and CRIF Highmark. These bureaus are regulated by the RBI under the Credit Information Companies (Regulation) Act, 2005. They provide credit scores and allied reports and services. As of now, their analysis reports are used for issuing credit cards and for taking decisions mainly on retail loans.

Month: Categories: Business, Economy & Banking