In order to tackle the credit availability issue of the MSMEs and startups, RBI has recently decided to establish a Public Credit Registry (PCR) that will facilitate access of financial institutions to the entire profile, including past loan details, and also regular income flows of borrowers. Enabling efficient credit risk assessment, such a registry can also offer attractive interest rates to good borrowers and higher interest rates to defaulters. The ultimate aim of this move is to foster transparency and promote financial inclusion for a sector that is widely acknowledged as the backbone of the Indian Economy.

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Speaking on the matter Kalyan Basu - CEO and MD of A.TReDS told Zee Business online in a written statement, "Implementation of PCR would be a landmark initiative in the lending landscape of India. It would not only give a boost to our raking on “ease of doing business” but would also have a deep and positive impact on Financial Inclusion, especially for the MSME segment. It would help the Financial Institutions immensely in terms of identifying the good borrowers and monitor over borrowing and loan staking more effectively thus reducing credit risk and bringing down the credit cost and ultimately leading to lower cost for the borrower and higher credit growth." 

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Hailing the RBI move Rajeev Chawla, Chairman, IamSMEofIndia said, "It would make the financial institution more stable in terms of credit quality and thus help the Indian economy in achieving higher growth." He said it would definitely have a positive impact on the Indian Prime Minister Narendra Modi's one of the most ambitious 'Startup India' programme.