RBI asks banks to use credit info for corporates

Banks are using credit bureau information for lending to retail investors, but there it is used less in case of corporate accounts

Mumbai: The Reserve Bank of India on Wednesday said it expects banks to use credit bureaux information not just for retail borrowers but equally for corporates also, reports PTI.

"Commercial banks are increasingly using information from the credit bureaux to extend loans to retail investors more in comparison to corporates. "The impression, we have sometime back is that this is used actively for retail and not so much for corporates," RBI Deputy Governor Anand Sinha told a meeting organised by Credit Information Bureau (India) Ltd (CIBIL).

Noting that banks are using credit bureau information for lending to retail investors, Mr Sinha pointed out that this is less used in case of corporate accounts now.

Mr Sinha asked these bureaux to furnish timely and accurately for greater relevance. "The data should be furnished timely and accurately."

The RBI Deputy Governor expressed the hope that going forward, banks would do a better balancing act. "Now, there are three more credit information companies. I am sure, situation will definitely improve."

Referring to creation of unique customer identification numbers, Mr Sinha said the central bank is looking at it. "We are looking at it. The Financial Stability Board is advocating it and G-20 is also in favour of it," he said, adding issuance of the Aadhar numbers provides a lot of hope in this regard.

Talking about the rationale behind creation of credit information agencies, he said this would help in increasing lending activity to SMEs and poorer section of the society.

"Without proper credit information, bank lending will be sub-optimal with bad borrowers. Also, credit information will help in increasing lending to SMEs and the poor."

Mr Sinha emphasised on creating awareness among the customers about credit information bureaux.

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IDBI Bank launches India's first online retail G-Sec portal

A retailer can log on to the portal and register with it for online purchase of government bonds and securities for high annualized yield

IDBI Bank has launched the country's first online G-Sec portal 'Samriddi' to enable retailers to purchase government bonds and securities for high yield.

Pursuant to RBI's desire that government bonds and securities should be made a popular mode of investment for retailers, the bank has taken the lead and launched the Samriddhi G-Sec portal for the purpose, IDBI Executive Director RK Bansal said.

A retailer can log on to the portal and register with it for online purchase of government bonds and securities for high annualized yield, he said.

Observing that retail investors' participation in government bonds and securities were much lower in India than countries like Japan, Mexico and Argentina, he said IDBI Bank will launch a series of awareness programmes to attract the retail investors.

Bansal said retail investors money was safe in government securities and bonds as there was a sovereign guarantee to the financial instrument and there will be no TDS on sale of such securities and bond upon redemption.

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Mobile cos add 9.8 million users in Jan

India's mobile subscriber base increased to 903.73 million in January, up from 893.84 million in the preceding month

Telecom operators added 9.88 million mobile subscribers in January, taking the total telephone user base in the country to 936.12 million, sectoral regulator Trai said.

India's mobile subscriber base increased to 903.73 million in January, up from 893.84 million in the preceding month, registering a growth of 1.11%, the Telecom Regulatory Authority of India (Trai) said in a statement.

The overall teledensity (telephones per 100 people) in India reached 77.57%.
However, the number of active mobile subscribers, according to the visitor location register (VLR) data, was 659.97 million on the date of Peak VLR for the month of January 2012.

VLR numbers provide details on active customers at any given point of time, excluding switched-off and out-of-the-coverage area customers.

The growth in the wireless category was led by Uninor, which added 2.49 million users, taking its total subscriber base to 38.79 million.

It was followed by Idea Cellular, which added 1.74 million new users to take its subscriber base to 108.12 million.

The country's largest operator Airtel added 1.3 million subscribers and its base was 176.95 million users.

Reliance Communications and Vodafone added 0.94 million and 0.85 million new customers to take their subscriber base to 151.02 million and 148.60 million, respectively.

State-owned telcos BSNL and MTNL added 0.87 million and 57,564 new users in January. Their subscriber base stood at 97.63 million and 5.73 million, respectively.

Aircel, Tata Teleservices and Sistema Shyam added 0.81 million, 0.22 million and 0.14 million new subscribers, respectively.

Wireline subscriber base declined from 32.69 million at the end of December 2011 to 32.39 million at the end of January 2012. BSNL and MTNL hold 80.91% of the wireline market share.

Broadband subscriber base increased from 13.30 million at the end of December 2011 to 13.42 million at the end of January this year.

The number of requests from subscribers to change their operators under the Mobile Number Portability (MNP) facility stood at 3.55 million in January.

In MNP Zone-I (Northern and Western India) maximum number of requests were received in Gujarat (3.04 million), followed by Rajasthan (2.72 million).

In MNP Zone-II (Southern and Eastern India) maximum number of requests were received in Karnataka (3.40 million), followed by Andhra Pradesh (3.04 million).

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