8 months ago
CICs seek RBI approval for utility payments in Grameen Credit Score
Credit Information Companies (CICs) in India want to include utility bill payments like electricity and water in a special credit score called the Grameen Credit Score.
This score helps banks understand if people in rural areas can repay loans.
Right now, CICs use things like loan history to calculate scores, but many rural people don't have much loan history.
By adding utility payments, CICs think they can give a better picture of a person's ability to pay back loans.
They have asked the Reserve Bank of India (RBI) and the government for permission to use this extra information.
The goal is to help more people in rural areas get loans and improve financial inclusion.
Credit Information Companies (CICs) seek RBI approval to include utility payments in the Grameen Credit Score.
The Grameen Credit Score aims to assess the creditworthiness of rural borrowers with limited credit history.
Current credit scores use parameters like loan repayment history and credit utilization.
CICs propose adding non-credit data such as utility bill payments to provide richer information.
The Union Budget 2025-26 proposed the development of the Grameen Credit Score framework by Public Sector Banks.
- Who
- Credit Information Companies (CICs) and the Reserve Bank of India (RBI)
- What
- CICs seek approval to include utility payments in the Grameen Credit Score
- Where
- India, specifically targeting rural areas
- When
- Representations made after the Union Budget 2025-26 announcement
- Why
- To better assess the creditworthiness of rural borrowers with limited credit history
Key facts
- Organizations Involved
- Credit Information Companies (CICs) including TransUnion CIBIL, Equifax, and Experian
- Regulatory Body
- Reserve Bank of India (RBI)
- Legislation
- Credit Information Companies (Regulation) Act, 2005 (CICRA)
- Proposed Data
- Utility bill payments (electricity, gas, landline, water)
- Current Parameters
- Loan repayment history, credit mix, credit utilization
- Target Population
- Rural borrowers with limited credit history
- Objective
- Enhance financial inclusion and rural credit coverage
Quotes
Senior executive with a CIC
A senior executive with a Credit Information Company
“So, we are very clear in terms of our mandate of working within the ambit of the CICRA (Credit Information Companies (Regulation) Act), 2005. Now, as an organization, we are focused on serving consumers and financial institutions. Following the Union Budget FY2026 announcement on the Grameen Credit Score, we built this Score basis the available credit data.”
thehindubusinessline.com
“So, while our operations are governed by the CICRA Act and the rules thereunder, we have made a request to the RBI and the Government saying that for the Grameen Credit Score, tapping of non-credit data be enabled.”
thehindubusinessline.com
Sources
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