Reserve Bank has prepared a bill for NFIR, the loan will be readily available

The Reserve Bank of India (RBI) has drafted a bill to establish the National Financial Information Registry (NFIR). Giving this information, Economic Affairs Secretary Ajay Seth said the goal is to increase access to credit and make it affordable. He said that at the Financial Stability and Development Council meeting in September, Finance Minister Nirmala Sitharaman had discussed the proposal to establish a debt (deposit) collector.

Speaking to PTI after the budget, Seth said the Reserve Bank has already drafted the bill, which is currently under consideration. His goal is to create a public infrastructure for credit-related information. NFIR will provide correct information to lending agencies. A National Registry of Financial Information would serve as the central repository for financial and auxiliary information.

The Finance Minister, in his first budget speech, said this would help facilitate lending, improve financial inclusion and promote financial stability. Seth said that in addition to having loan information, the proposed NFIR would also contain ancillary information such as tax payments, energy consumption trends. He added that if the lender does not have enough information, it will create risk and therefore increase the interest rate. On the other hand, if the risks are well understood, the loan can be used at a better price. He said the proposed entity would help in fair pricing of loans and reduce risk for all stakeholders.

Disclaimer:Prabhasakshi has not edited this news. This news has been published from PTI-language feed.