Government should strengthen credit bureaus

Reserve Bank of India Deputy Governor N S Vishwanathan has said the government has to make some legislative amendments if the RBI has to strengthen the credit bureaus.

Delivering the key note address at the banking summit organised by IBA and FICCI, he said there is a need to strengthen the credit bureaus but to do that some legislative amendments are needed. “We have several measures in that direction (strengthening credit bureaus). Some of these are in terms of expanding the database… database that credit bureaus require, certain legal amendments and that is a work in progress,” he said. On the small scale sector, Vishwanathan said, “the MSME sector plays an important role in any economy, and India is no exception. Recognising their role as providers of employment and generators of export, the Government and RBI have taken affirmative measures to strengthen the sector. The RBI has introduced the Trade Receivables electronic Discount System to address delays in recovery, he said.