Chief Minister A. Revanth Reddy-led Congress government in its TG Rising 2047 Vision is proposing an Information Bureau that will harness alternative datasets such as property registration and electricity payments to generate individual credit record scores.
It will be a consent-based digital information bureau that drawing on the alternative data will generate verifiable individual credit histories to expand access to formal low-cost credit for credit-invisible households.
Projected as a measure to bridge the gap that exists in formal credit access, the Telangana Information Bureau (TIB) will be a “secure, privacy-preserving and research-driven data infrastructure.” It will integrate verified administrative datasets such as property registration, electricity payments, welfare transfers and tax records to generate alternative credit scores for individuals as well as enterprises.
The idea is to develop a composite alternative credit score through expert-led analytics that transforms raw data into anonymised financial signals and use the same to expand formal credit access for individuals without a CIBIL score, particularly Self-Help Group members and low-income households.
However, towards ensuring financial inclusion advances alongside data protection, only the derived score and not the underlying data will be shared with lenders, the draft document showed.
