The RBI has asked banks to develop a unique system of customer identification. The system could be used by all banks while evaluating loan proposals for retail as well as corporate customers.
Unique customer identification is essential as banks have limited knowledge about borrowers’ credit history. RBI stated that the system would solve problems of multiple lending in which a customer can avail loans from more than one bank. The RBI’s financial stability board had backed the idea. RBI said it expected banks to use credit bureau information not just for retail borrowers but for corporate houses as well. “Without proper credit info, bank lending will be sub-optimal with bad borrowers. Also, credit info will help in increasing lending to SMEs and the poor,” said Anand Sinha, deputy governor, RBI.
The National Stock Exchange (NSE) launched a know-your-customer registration agency (KRA) through its subsidiary Dotex International. The move comes in the wake of a specific directive from the SEBI to start KRAs. “Brokers who have been working with us had approached us to provide them with this additional service... So, NSE has decided to offer this facility through Dotex,” NSE said in a statement. The initiative will benefit investors as their paper work will be reduced and they have the option of going to another intermediary without repeating the KYC formalities.
Bharti Airtel has launched mobile wallet service ‘airtel money’ in Maharashtra and Goa. Customers could choose from two airtel money accounts: express and power accounts. In express accounts, one can load cash and spend up to Rs10,000 daily, while the power account has a limit of Rs5,000 per transaction. Over 1,800 brands across the country will accept payments via airtel money. The brands include utility providers, insurers, retailers, mutual funds, movie theatres and local merchants. Airtel has tied up with over 60 brands and merchants in the north eastern states for its airtel money.