It therefore recommended that banks may be required within a reasonable period of, say, eighteen months, to arrange for capturing the required data from SHGs for reporting to CICs. 23. The present regulatory framework only mandates NBFC-MFIs to share their clients’ data with CICs. NGO-MFIs which include section 25 companies, societies, trusts, etc.
play a significant role in the micro finance sector, however they are not yet mandated to share their data with credit bureaus, though some NGO-MFIs are voluntarily participating. Some study shows sizable overlaps between SHG Bank linkage and MFI clients. This indicates the severity of over-indebtedness / ghost borrowing, asymmetric information, moral hazard, etc. 24.