Individuals trying to give wrong personal information to banks or customers switching banks in order to defraud may find it tough with a nationwide database of reported fraudulent and suspect activities being launched on Wednesday.
The database, called CIBIL Detect, was launched by Credit Information Bureau of India and is the country?s first repository of fraud and high-risk activity information.
?Banks and financial institutions have been reporting rising cases of frauds. Realising this, Indian Banks? Association entrusted Cibil to develop an exhaustive repository of information of such activities to capture methods used to commit the fraud,? Cibil managing director Arun Thukral said after the launch of CIBIL Detect.
According to the latest RBI figures, Indian banks reported fraud losses of Rs 1,880 crore in 2009.
However, the database can be accessed only by member banks and financial institutions, state financial corporations, non banking financial companies, housing finance companies and credit card companies, he said.
?People with poor credit history may have reduced chances of getting loans from the bank, while those who are good borrowers can get incentives through this repository of information,? Thukral said. He said Cibil was also preparing a database of rural commercial and consumer borrowers to cater to the growing demand of microfinance institutions.