Shaktikanta Das, governor of the Reserve Bank of India (RBI), recently stated that the draught Bill for the establishment of the National Financial Information Registry (NFIR), which was announced in the Union Budget for 2023–24, would be available shortly. By giving lenders a “360 degree” view of potential borrowers, NFIR aims to speed up loan sanctions and credit flows, Das told reporters after delivering the annual post-Budget address to the governing board of the RBI.
Although experts concur that great progress has been achieved in granting loan access to micro, small, and medium-sized businesses (MSMEs), more has to be done.
Fintech pioneers agree that the implementation of the NFIR for MSMEs has the potential to increase MSME access to credit, but only if it successfully tackles the issue of ready information availability and integrates with the Account Aggregator architecture, enabling end-to-end digital MSME financing.
Arun Poojari, co-founder and CEO of Cashinvoice, a digital marketplace that unlocks supply chain finance for small businesses, stated that the establishment of a registry to facilitate credit flow to MSMEs will strengthen cash flow-based lending from collateral-backed sources, increasing credit flow and facilitating economic inclusion.
