what is CRILC (Question: 118844.0 )

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Abhishek Nath

· commented

· 1 Months ago

See, CRILC means Central Repository of Information on Large Credit. It was set up by RBI in 2014. According to the Economic Survey 2015, Indian economy's biggest hurdle is the Twin Balancesheet Problem, where the PSBs and Private Sector Banks are running short on capital. The main problem for PSBs is the increasing NPAs. Now the concept of NPA is that if a loan's interest/principal is unpaid for more than 90 days it becomes an NPA. But the thing is before 90 days, a loan remains a standard asset for a bank and then suddenly after 90 days it becomes an NPA. So the RBI brought in a mechanism that will detect early signals of an asset being stressed. They set up CRILC, a portal where all lenders (Banks + NBFC-D + NBFC - SI) will provide their credit information, i.e., their loans. However, the information they will have to provide will only be of loans of Rs. 5 crore or more.
I hope this helps

what is CRILC (Question: 118844.0 )

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