JOIN USThe Reserve Bank of India (RBI) has decided to create a central repository for large borrowers-- both individuals and entities-- with exposure of more than Rs 10 crore to help banks deal with credit risks.
In a notification issued on Thursday, the central bank said it is necessary to build a repository of large credits and share it with banks for enabling them to be aware of building leverage and common exposures.
"Accordingly, it has been decided to use the information supplied by the banks through the Return on Large Borrowers (Form A), which captures system-wide exposure of individuals and entities having exposure (both fund and non-fund based) of more than Rs 10 crore, for creation of central repository of large credits across banks," it added.
Raghuram Rajan on his taking over charge as RBI's 23rd Governor last week had stated that the central bank proposes to collect credit data and examine large common exposures across banks.
"This will enable the creation of a central repository on large credits, which we will share with the banks. This will enable banks themselves to be aware of building leverage and common exposures," he had said.