NPCI is gearing up to launch Credit Score after UPI, this is how common people will get help

After UPI, NPCI i.e. National Payments Corporation of India is gearing up to give another big gift to common people. Payments Corporation is planning to launch its own credit score, which can be checked soon. A senior officer of NPCI gave this information.

NPCI set this target.

A report in Business Standard quoted NPCI Chief Operating Officer Praveena Roy as saying that the credit scoring system could be launched soon. For this, NPCI has planned to bring digital payment score. He said that NPCI’s Digital Payment Score aims to improve the country’s credit scoring system.

The experiment will start soon.

Before launching its credit score, NPCI wanted to see if there was an opportunity to create a digital payments score in India that could be part of the credit scoring process. For this, National Payment Corporation of India is going to start using it in the near future along with some banks. After seeing how the digital payment score works, NPCI will decide further.

Less information about people’s credit history

The COO of NPCI believes that credit scoring in India is still miles behind the level of sophistication that credit scoring is already at in many developed countries. Currently people in the country have very little information about credit scores. Due to which people often face problems. Citing the example of America, he explained how from student life, people start focusing on building credit score/history and use credit cards even when they don’t need to.

Why is credit score/history important?

Credit score becomes essential for anyone who wants to take a loan from a bank or NBFC etc. Whether you need a home loan to buy a house or a car loan to buy a new car, getting a loan without a good credit score or credit history can be very difficult. To build a credit history, a credit card or loan becomes necessary. Only after that the credit profile of the people is prepared.

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