Lower-income households also have less in savings to buffer price increases, meaning that they not only feel the effects more forcefully, but they also feel them immediately. The savings they do have are more likely to be in cash or noninterest-bearing accounts, which means inflation directly erodes the purchasing power of their savings.
More and more countries are moving towards this with a view to improving the credit culture in their jurisdictions. Such registers help in enhancing efficiency of the credit market, increase financial inclusion, improve ease of doing business, and help control delinquencies.