Regulators weigh bringing insurance surety bonds under RBI's CRILC

Financial regulators are exploring adding insurance surety bond exposures to a central credit database. This move aims to provide banks and rating agencies a clearer view of corporate leverage. Currently, these contingent liabilities often escape regulatory reporting requirements. Many government departments now accept these bonds instead of traditional bank guarantees. Expanding the database will strengthen credit appraisal processes for lenders.

Raccontata daeconomictimes.indiatimes.com