A repository will offer a consolidated platform for diverse data, negating the necessity for lenders to source information from multiple channels.
Such a repository may also help in curbing fraudulent activities.
RBI also announced that it will come up with guidelines to govern web aggregation of loan products.
The Reserve Bank of India (RBI) has proposed the establishment of a fintech repository. “This will be operationalised by the Reserve Bank Innovation Hub in April 2024 or earlier. FinTechs would be encouraged to provide relevant information voluntarily to this Repository,” said Governor Shaktikanta Das while announcing the Monetary Policy Committee decisions on Friday.
The RBI also announced that it will come up with detailed guidelines to govern web aggregation of loan products.
The fintech repository holds the potential for various improvements in the . Firstly, it promises enhanced access to fintech information, offering a consolidated platform for diverse data, negating the necessity for lenders to source information from multiple channels. This streamlining of processes not only reduces operational costs but also significantly augments efficiency within the fintech ecosystem.
Additionally, the repository's comprehensive compilation of an individual's fintech profile facilitates better credit risk assessment for lenders. By providing a holistic view of a borrower's financial health, it empowers lenders to make more informed credit decisions.
Consequently, this informed decision-making has the potential to reduce loan defaults, thus fostering a healthier credit environment overall.
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