RBI Proposes Unique Borrower ID

In a step towards better credit data hygiene, the RBI has proposed introducing a unique borrower identification number across all financial institutions.

👉 What’s the Proposal?

• All loan accounts to be tagged with a unique borrower ID
• To be used by banks & NBFCs while reporting to credit bureaus
• Meant to avoid duplication and mismatches in borrower data

👉 Why It Matters

• Frequent disputes in credit reports are often due to ID mismatches
• Personal loan borrowers most affected by inaccuracies
• The unique ID aims to bring accuracy, transparency & consistency to credit reporting

👉 Benefits for Borrowers & Lenders

• Cleaner credit history, fewer disputes
• Stronger due diligence and credit decisioning for lenders
• Empowers consumers to maintain and track credit profile more reliably

👉 Industry Impact

• Expected to boost trust in credit reports
• Seen as a major reform in credit infrastructure
• Aligns with RBI’s push for tech-led, consumer-centric governance

👉 Public Feedback Open

The proposal is currently open for stakeholder comments. Once rolled out, it could set a new benchmark in India’s credit ecosystem

RBI suggests need for unique borrower identifier to improve credit data accuracy

In his keynote address at TransUnion CIBIL’s Credit Conference, RBI

In his keynote address at TransUnion CIBIL’s Credit Conference, RBI Deputy Governor M Rajeshwar Rao said identity standardisation remains a key challenge in the country’s credit information framework.

“We must move towards a unique borrower identifier, which is secure, verifiable, and consistent across the system,” he said.

Currently, Credit Information Companies (CICs) rely on credit institutions to furnish accurate and validated borrower identity details. In the absence of a unified identifier, instances of data duplication and misreporting continue to pose risks in credit assessment and decision-making processes.

Rao made the remarks while speaking on the evolution of India’s credit reporting infrastructure and the way forward. He stressed the importance of improving both data freshness and data quality to support responsible lending.

“Data quality is the bedrock of responsible lending, and the Reserve Bank has always emphasised the importance of accuracy in regulatory submissions,” Rao said.

As per current norms, credit institutions submit data to CICs fortnightly. Rao indicated that moving towards real-time or near-real-time updates would help improve underwriting precision and better reflect borrower actions such as loan closures or repayments.

The idea of a unique borrower identifier was presented in the context of improving consistency in data across entities and enabling a more accurate credit ecosystem. However, no specific timeline, structure, or implementation framework was outlined in the speech.

Industry participants view this as a practical solution to long-standing credit data challenges.

“Right now, one reason why so many people face credit report errors is simply that there’s no single verified ID tying all their loans and cards together. Names, addresses, or old details often don’t match across banks and NBFCs, which creates gaps or duplicate entries,” Siddarth Jain, CFO, MinEMI, said.

Jain added that a unified identifier would act as a “master link” for each borrower, improving the accuracy of repayment records and building trust across the ecosystem.

Credits – CNBC TV18