Keynote address by Dr K C Chakrabarty, Deputy Governor of the Reserve Bank of India, at the Training Workshop on Credit Scoring Model with support from IFC for MSE Lending, Mumbai, 29 November 2013
With a view to expediting the flow of credit to the MSE firms, RBI, as a proactive measure, issued guidelines in May 2009, advising banks to start using scoring models for making lending decisions in case of all advances up to Rs.2 crore. However, despite, our instructions having been issued nearly five years back, we find that use of credit scoring model in the real sense has not really taken off in India. Our assessment is that perhaps the lack of conceptual clarity on the subject could be one of the reasons for banks’ reluctance in using the credit scoring model for making MSE lending decisions. In fact,.....
Assistance provided by Ms. Lily Vadera is gratefully acknowledged
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