Economic Affairs Secretary Ajay Seth on Tuesday said a Bill to set up a National Financial Information Registry to help bridge a critical gap in credit rating mechanism is almost complete.
DEA Secretary Ajay Seth announced that a Bill to establish NFIR, aimed at improving the credit rating mechanism, is nearly complete. The registry will serve as a central repository for financial information, enhancing credit flow, financial inclusion, and stability, while also expanding access to financial services in India
Economic Affairs Secretary Ajay Seth on Tuesday said a Bill to set up a National Financial Information Registry to help bridge a critical gap in credit rating mechanism is almost complete.
The objective is to build a public infrastructure for credit-related information, and the right information can be made available by the National Financial Information Registry (NFIR) to lending agencies.
A National Financial Information Registry will serve as the central repository of financial and ancillary information. This will facilitate the efficient flow of credit, promote financial inclusion, and foster financial stability.
Speaking at the CII Financing 3.0 Summit here, Seth said more work needs to be done in terms of credit ratings and developing the secondary market.
"The Bill for National Financial Information Registry is almost complete after extensive consultations. We expect that early set up of registry, post-enactment (it) will help in bridging a critical gap in credit rating mechanism," Seth said.
Talking about the agenda for the next 5-7 years, he said there is a need to expand access to credit, insurance, pension and capital market products for a wider audience.
To achieve this, he said the industry to make services far more efficient, resulting in a reduction of the cost of intermediation.
Seth also emphasised the need to improve the quality of services.
Underlining the need for deepening and broadening the bond market, Seth said about 9 lakh crore or just 3 per cent of GDP are raised through bonds. Of this, 98 per cent is through private placement, and 80 per cent of issuances are AAA-rated.
Talking about Pradhan Mantri Jan Dhan Yojana (PMJDY), he said it has just completed a decade of its existence.
The success of the initiative is reflected in 53 crore people having been brought into the formal banking system through the opening of Jan Dhan Accounts, he said, adding that these bank accounts have garnered a deposit balance of Rs 2.3 lakh crore.
Today, 70 per cent of the population has a bank account thanks to PMJDY, he added.