CIBIL to launch MFI Bureau by June: Chairman

CHENNAI: To keep track of rural borrowers, the Credit Information Bureau (CIB) would soon launch a Micro Finance Institution bureau that would add another 55 million rural accounts to it, a top official said here today.

"In the first quarter (of next financial year), we will start MFL bureau ( Microfinance institution).

"Nearly 60 per cent of total data is related to rural borrowers. Hence, the objective is to merge the MFI data with CIB to enrich the data base," CIBIL Chairman M V Nair told reporters on the sidelines of the sixth annual credit information conference here.

With the establishment of MFI Bureau, CIBIL would have more access to the accounts of individuals through which bankers and financial institutions may obtain the track record of the account holder.

"With the help of the MFI, money lenders will also be able to get the track record of borrowers," he said.

Currently, CIBIL has about 400 million data and with the MFI bureau they would be able to get additional 55 million accounts that would give the trend of an individual in rural areas, he noted.

On "CIBIL iScan", launched after discussions with the Indian Banks Association, he said it would help generate the complete track record of corporates opening a current account in a bank.

"There was a trend where corporates having stressed loan and a current account, open a new current account in another bank and diversify the stressed loan. With iScan, whenever a company opens a current account, the bank will verify it and get the complete track record."

"If they (corporates) have NPAs that are stressed, they may not be able to open the account," he said.

Currently, CIBIL has 20,000 members, including banks, regional rural banks, NBFCs and over 20 crore borrowers, he added.