CICs seek RBI approval to include utilities in the Grameen Credit Score

While the GCS framework, announced in the Union Budget 2025-26, currently relies on traditional credit parameters, CICs argue that including utility payments can provide a more accurate picture of borrower behavior. | Photo credit: iStockphoto

Including non-credit data in GCS can help lenders better assess the creditworthiness of potential borrowers with limited credit histories in rural areas, thereby promoting financial inclusion and increasing credit coverage in rural areas.

The Union Budget 2025-26 proposed that public sector banks (PSBs) would develop a ‘Grameen Credit Score’ framework to meet the credit needs of SHG (self-help group) members and people in rural areas.

Subsequently, CICs such as TransUnion CIBIL, Equifax Credit Information Services and Experian Credit Information Company of India launched their Grameen Credit Score.

Currently, CICs use parameters such as loan repayment history, credit mix and credit utilization to determine borrowers’ credit scores.

Because many borrowers in rural areas fall into the ‘thin file’ category, with little credit history, CICs want non-credit parameters, such as utility bill payments (including electricity, gas, landline and water), to also be included in the development of the GCS.

“So, we are very clear in terms of our mandate to work within the ambit of the CICRA (Credit Information Companies (Regulation) Act), 2005. Now, as an organization, we are focused on serving consumers and financial institutions.

“After the announcement of the Union Budget FY2026 on the Grameen Credit Score, we have based this Score on the available credit data,” said a senior executive at a CIC.

He highlighted that CICs have made representations to the banking regulator and the government that if companies are allowed to tap certain non-credit data, they can develop credit scores that can help a lender correctly assess a borrower’s creditworthiness.

“So while our activities are governed by the CICRA Act and rules thereunder, we have filed a request with the RBI and the government stating that Grameen Credit Score should allow tapping of non-credit data,” the executive said.

Non-credit data can come from multiple sources, making rural credit possible. In addition, utility bill payments can provide richer information to understand rural consumers.

Published on December 26, 2025