- It has been recommended by a working group formed by Irdai and the General Insurance Council, that the risk profiles of individuals are evaluated and should be used to calculate their credit scores.
- A poor credit score can deprive a person of financial services such as loans and credit cards, and deter him from indulging in fraud.
- Over a year there has been a 45,000 crore in the Insurance sector.
- In order to add it, the changes have to be done through amendments to the Credit Information Companies (Regulation) Act, 2005, Credit Information Companies Regulations, 2006, and Credit Information Companies Rules.
- Companies to collect this credit information details of borrowers’ accounts such as credit limit, outstanding balance, repayment history, amount and period of default, primary or collateral security taken, as well as details of insurance fraudsters to provide him a loan or not.
Question:
Q.1 Which of the following governing body has Considered a proposal to include credit information?a. RBI
b. IRDAI
c. NABARD
d. PFRDAI
