Credit Information Bureau On Net For State Coop Banks

Maharashtra-based co-operative banks may no longer live in fear of their assets turning sticky on account of borrowers leading them up the garden path.

The registrar and commissioner of co-operative societies (RCS) has given a green signal to the banks to participate in an internet-driven exclusive co-operative credit information bureau.

As small banks do not have the wherewithal to dig into the credit history of borrowers and in view of lack of information exchange between these banks, more often than not, they end up financing phony project proposals.

Further, deceitful borrowers take loans from different gullible co-operative banks but present the same collateral. Hence, multiple charges are created on a single security.

In order to stem this rot, a co-operative credit information bureau