Why is it in the news?
The government introduced it for rural borrowers. Aims to improve financial inclusion.
Category: Economy
Important Points:
● Alternative credit scoring system for rural population
● Targets borrowers without formal credit history
● Uses behavioural and social data
● Supports SHGs, farmers and micro-enterprises
● Range between 300–900 like traditional scores
● Developed by credit information companies
● Uses data from KCC, SHGs and priority sector lending
● Enables individual credit identity in rural areas
● Promotes access to formal banking system