After UPI, NPCI i.e. National Payments Corporation of India is preparing to give another great gift to the common people. The payments corporation is planning to launch its own credit score, testing for which can be started soon. A senior official of NPCI has given this information.
NPCI set this target
In a report of Business Standard, NPCI Chief Operating Officer Praveena Rai has been quoted as saying that the credit scoring system can be launched soon. For this, NPCI has prepared a plan to bring digital payment score. He said that the aim of NPCI’s Digital Payment Score is to improve the credit scoring system of the country.
Experiment is going to start soon
Before launching its credit score, NPCI wanted to see if there was an opportunity in India to create a digital payments score that could become part of the credit score determination process. For this, National Payments Corporation of India is going to start using it in collaboration with some banks in the near future. After seeing how the Digital Payment Score works, NPCI will decide further.
Less information about people’s credit history
The COO of NPCI believes that credit scoring in India is still miles behind the level of sophistication at which credit scoring is already in many developed countries. Right now people in the country have very little information about credit score. Due to this, people often have to face problems. Giving the example of America, he told how right from student life, people start focusing on building credit score/history and use credit cards even when not needed.
Why is credit score/history important?
Credit score becomes necessary for every person who wants to take a loan from a bank or NBFC etc. Whether you need a home loan to buy a house or a car loan to buy a new car, it becomes very difficult to get a loan without a credit score or credit history. To build a credit history, a credit card or a loan becomes necessary. Only after that the credit profile of the people is prepared.