RBI’s Deputy Governor Pushes for Real-Time Credit Reporting and Standardised Borrower IDs to Deepen Trust and Democratise Credit Access

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RBI Deputy Governor M. Rajeshwar Rao urged Credit Information Companies to adopt real-time credit data reporting and implement standardised borrower IDs to enhance transparency, trust, and financial inclusion. He also highlighted the responsible use of AI, tokenisation, and alternate data as key enablers for expanding credit access to underserved segments like MSMEs and gig workers.

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On 2 July 2025, the Reserve Bank of India (RBI) Deputy Governor M. Rajeshwar Rao, while addressing a conference organised by TransUnion CIBIL, issued a strong policy advisory to Credit Information Companies (CICs), including CIBIL, Experian, and CRIF High Mark, urging a transition from fortnightly to real-time or near-real-time credit data reporting. Emphasising the importance of this move, he stated that faster data relaying would improve underwriting accuracy, enable timely reflection of loan repayments or closures, and enhance consumer experience by promoting transparency and trust across the credit ecosystem.

Rao acknowledged that this technological shift would require significant investment in infrastructure, process redesign, and change management, but stressed that the long-term benefits far outweigh the costs, especially in the era of digital lending and alternative credit assessment.

Another major recommendation was the creation of a "unique borrower identifier"—a standardised identity key to reduce duplication and data mismatch. Currently, CICs depend on credit institutions to provide accurate borrower details, and in the absence of identity standardisation, issues like misreporting and duplication continue to pose systemic risks.

Addressing the increasing reliance on AI and machine learning in the financial sector, Rao flagged concerns around model risk, especially when these systems are not adequately tested or monitored for bias and performance degradation. He called for robust governance frameworks, continuous oversight, and ethical standards in AI usage, reaffirming that innovation must be "responsible, accountable, and privacy-respecting".

Rao also spoke about the transformative potential of alternate data, noting that gig workers, small merchants, and freelancers could soon become credit-eligible through data drawn from e-commerce platforms and gig economy apps. He projected microfinance as a primary beneficiary of AI integration and highlighted the importance of a unified lending interface in expanding formal credit access.

On the tokenisation front, Rao suggested its use to digitise and represent financial or real assets, especially by SMEs, to improve collateral value and bridge information asymmetries in credit markets. He further advocated for a stronger integration between OCEN (Open Credit Enablement Network) and ONDC (Open Network for Digital Commerce) to democratize credit access and unlock opportunities for MSMEs.

Concluding, Rao reiterated the critical role of CICs in ensuring the success of India's inclusive credit architecture. He emphasised that the core values of integrity, transparency, and public service must guide the evolution of credit markets, especially as innovation scales rapidly across the sector.