While the GCS framework, announced in the Union Budget 2025-26, currently relies on traditional credit parameters, CICs argue that incorporating utility payments can provide a more accurate picture of borrower behaviour.
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Credit Information Companies (CICs) have represented to the Reserve Bank of India (RBI) and the Government that they should be allowed to tap non-credit data, such as utility bill payments, for arriving at the Grameen Credit Score (GCS).
Incorporating non-credit data into GCS can help lenders better assess the creditworthiness of prospective borrowers with limited credit history in rural areas, furthering financial inclusion and increasing rural credit coverage.
The Union Budget 2025-26 had proposed that Public Sector Banks (PSBs) will develop a ‘Grameen Credit Score’ framework to serve 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 utilisation to determine borrowers’ credit scores.
As 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 (electricity, gas, landline connection, and water, among others), to also be incorporated in arriving at the GCS.
“So, we are very clear in terms of our mandate of working 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.
“Following the Union Budget FY2026 announcement on the Grameen Credit Score, we built this Score basis the available credit data,” said a senior executive with a CIC.
He underscored that CICs have made representations to the banking regulator and the government to the effect that, if allowed to tap some non-credit data, companies can develop credit scores that can help a lender correctly assess a borrower’s creditworthiness.
“So, while our operations are governed by the CICRA Act and the rules thereunder, we have made a request to the RBI and the Government saying that for the Grameen Credit Score, tapping of non-credit data be enabled,” the executive said.
Non-credit data can come from multiple sources, thereby enabling rural credit. Moreover, utility bill payments can provide richer information to understand the rural consumer.
Published on December 26, 2025
