Aditya Puri committee recommendation: Give customers a free copy of credit profile

As per the Aditya Puri committee recommendations, customers should be given a free copy of their credit profile as it would help in promoting financial discipline among loan seekers.
 Excerpts of the recommendations made by Puri committee

  • Headed by Aditya Puri (Chairman of HDFC Bank).
  • Recently submitted report of the ‘Committee to recommend Data Format for Furnishing of Credit Information to Credit Information Companies (CICs)’ to RBI.
  • On issues relating to credit information viz. increasing its coverage, format of reports and best practices to be followed by credit institutions, Credit Information Companies (CICs) and the RBI.
  • Provide customers with a free copy of their Credit Information Reports (CIRs) that would help to create awareness about the need to have credit discipline, enable customers to correct their behaviour and improve their score well before they plan to avail fresh credit of any kind.
  • Help to detect identity theft at an early stage.
  • Low usage of credit information by member institutions and other specified users needs to be addressed by requiring CICs to populate their databases with requisite credit information so that enquiries by specified users yield desired information
  • Reduce the information asymmetry between lenders and borrowers and  provides a fillip to the growth of credit especially among the disadvantaged sections of society.
  • Use common data formats and a common data quality index that could assist credit institutions in determining the gaps in data.
  • CICs should have a common classification of credit scores so they are easier to understand and interpret.