Info bank of large borrowers to be set up

The Reserve Bank of India (RBI) would create a central repository of borrowers with an exposure of more than Rs 10 crore. The database would include individuals, as well as entities.

In a circular to banks, the central bank said it was necessary to build a repository of large credits and share the information with banks. “It has been decided to use the information supplied by banks through the return on large borrowers (form A), which captures the system-wide exposure of individuals and entities with exposure (both fund and non-fund based) of more than Rs 10 crore for creation of a central repository of large credits across banks,” the circular said. After taking charge as RBI governor, Raghuram Rajan had announced the central bank planned to create a central repository of large exposures. “This (repository) will enable banks to be aware of building leverage and common exposures,” he had said.

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