Credit registry, credit scoring and enhancing access to finance

Abstract

This report provides policy recommendations for building the Public Credit Registry for India focused on increasing access to finance in the country, especially for the country's bottom of pyramid people and businesses. First, we studied the existing credit scenario in the country and identified the gaps in the current credit reporting framework. After linking the existence of these gaps to information asymmetry and adverse selection problems, we established the strong need for PCR for India to resolve these problems. Finally, we dived into the emergence of the fintech industry in India and analyzed how it is working towards enhancing financial inclusion and further established the increased importance of PCR in India.