Lok Sabha Question No. 2213 (UNSTARRED), answered on 2021-08-02
Subject: Credit Score System
Ministry: FINANCE
Asked by: Ravneet Singh

## GOVERNMENT OF INDIA MINISTRY OF FINANCE

ANSWERED ON- 02/08/2021

## LOK SABHA UNSTARRED QUESTION NO-2213

## CREDIT SCORE SYSTEM

## 2213. SHRI RAVNEET SINGH BITTU

Will the Minister of FINANCE be pleased to state:-

- whether the Government is awate that A8 per a survey On awareness of credit a) the populace, there is lack of awareness about the score system among and of the borrowers are not aware of even the interest credit score many amount on their loans; general system
- (6) if so, the details thereof;
- whether the Government is taking any measures to awareness about the ctedit score system among the people of the country and if s0, the details thereof; spread
- (d) whether the Government is taking any measures to financial awareness and promote lending from banks o RBI companies in the country; and spread registered
- (e) if s0, the details thereof and if not; the reasons therefor?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF FINANCE

(DR. BHAGWAT KARAD)

- (a) to (e): Credit Information   Companies   (CICs) collect; process and collate information on trade, credit and financial standing of the borrowers of credit and credit information to users in the form of a institutions credit information which also   includes a credit As per TransUnion CIBIL, one of the four CICs registered with Reserve Bank of India (RBI) , credit awareness has increased among borrower/ prospective borrowers; as evidenced by increase in number of consumers checking their credit scores by three times from the 2018 to 2020 and increase in consumer checking of credit score by two times during the: same Further; a5 per TransUnion CIBIL, rate of interest; EM and processing fee online before availing of a and pertaining to Best loan interest rates" has grown by 44 per cent in the year 2020 over 2019, which shows increase in awareness of the rate of interest among borrowers specified provide year period. search loan,

RBI; with other financial sector has established National Centre for Financial Education (NCFE), to promote financial education across the nation for all sections of the population a8 per the national strategy fof financial education of Financial Stability and  Development   Council NCFE conducts campaigns, seminars, workshops, conclaves, training, programmes,  discussion forums, etc , across the country to impart financial education and create financial awareness and empowerment NCFE in consultation with financial sector regulators and other relevant  stakeholders has prepared for Financial Education document (2020-2025), to support the vision of the Government of India and financial sector regulators of creating a financially aware and empowered India, by empowering various sections of the to develop  adequate better and plan for their future. In order to achieve the said vision, various strategic objectives have been laid down which includes inter alia encourage availing credit from formal financial institutions as per requirement regulators along population

As per inputs received from RBI; Financial Awareness Messages (FAME) booklet is prepared by which   provides basic financial   literacy messages for the information of It contains neutral financial awareness messages, which inter alia includes credit score and the same are imparted on an ongoing basis by Financial Literacy Centres and rural branches of banks: public xxxxx