Industry body, Confederation of Indian Industry (CII) which had earlier said that the demonetisation move of the government will strike a blow to the illegal economy and would have a dampening impact on inflation, giving room to the Reserve Bank of India (RBI) to cut the policy rates, has said that the demonetisation move has created an enormous opportunity to channelise public savings into productive assets.
The industry body added that identification data of the borrowing entity can be procured through PAN,TIN/CIN/GSTIN (post launch of GST), Articles of Association & Memorandum of Association and financial information can be availed from sources like annual returns which are available with Ministry of Corporate Affairs (MCA) as scanned documents, Form 26 AS with Income Tax authorities, and Provident Fund data with Employees Provident Fund Organisation (EPFO). It said that while customers will gain from hurdle-less access to credit, the banks may choose to offer loans at varied interest rates depending on the strength of data of the customer.
The chamber further suggested that abundant data on SMEs and corporates through various sources can be made available to banks and other lending institutions, pointing out that banks will benefit from authentic financial and other data to accurately identify the right customers. To accomplish this, CII has recommended consolidation of SMEs and corporates financial data with banks to assess creditworthiness of borrowers.