Page 17 - Banking Finance April 2018

ROUNDUP

UIDAI flags low Aadhaar Maharashtra signs MoUs worth Rs. 4.8 trillion
enrolment in 2,500 bank Maharashtra has signed investment commitments worth around Rs.4.85 tril-
lion with a number of global and domestic compa-
branches nies, the second day of the Magnetic Maharashtra

The Unique Identification Authority Global Investors Summit. Chief minister Devendra
of India Fadnavis said the state was likely to exceed its tar-
(UIDAI) has get of signing memoranda of understanding (MoUs)
flagged low worth Rs10 trillion.
Aadhaar en-
rolment and Cibil launches subscription based service for credit
updation at score
nearly 2,500 out of over 7,000 bank
branches that have started the facil- Credit information company TransUnion Cibil is now offering borrowers access
ity, and instructed banks to take im- to their credit score and repayment history under a
mediate steps to correct the situa- subscription model as against a static report. TU
tion. The Aadhaar-issuing body is of Cibil is also providing consenting customers loan of-
the view that the enrolment or fers based on their scores and lending criteria pro-
updation activity carried out in each vided by banks.
of these laggard branches must be at Retail loans applications have tripled from 90 lakh
least 16 per day. applications in the first quarter of 2013 to three crore in the first quarter of
2017, according to TU Cibil data. "Given the increase, we decided to run some
EPFO makes online claims analytics on 1.2 million consumers who have applied for their credit score," said
must for PF withdrawals Hrushikesh Mehta, VP and head of TU Cibil's direct-to-consumer interactive plat-
form.
above Rs. 10 lakh
According to Mehta, 31% of those who sought a credit score went ahead and
EPFO has made it mandatory to file got a loan in the next few months. "We also found that 25% of those who check
online claims for provident fund with- their score, paid up their delinquent loans (overdue for 90 days) to improve the
drawals above Rs10 lakh, taking an- same," said Mehta. He added that interest in the score has soared after one
other step towards becoming a lender (Bank of Baroda) offered a one percentage point discount for those with
paperless organisation. a credit score of over 750.
The Employees Provident Fund Given that there is a gap between the time borrowers seek their credit score
Organisation (EPFO) has also made it and actually avail of the loan, TU Cibil has decided to come up with a subscrip-
mandatory to file online claims for tion model where customers have unfettered access for one month, six months
withdrawals of above Rs5 lakh under and one year on payment of Rs 550, Rs 800 and Rs 1,200 respectively.
the Employees Pension Scheme
1995. Under the pension scheme, According to Mehta, this will help the customer to track his score live. "In ad-
there is a provision of part with- dition to those who plan to avail of loans, there are borrowers who want to
drawal of pension, commonly known ensure that everything is all right at all times. This ensures that they are eli-
as commutation of pension money. gible for loans during an emergency," he added.
At present, EPFO subscribers have
the option of filing online as well as
manual claims for provident fund
withdrawal as also for pension. The
decision was taken at a meeting
chaired by Central Provident Fund
Commissioner (CPFC) on 17 January
2018, an official said.

BANKING FINANCE | APRIL | 2018 | 17