In an exponentially growing economy like India, growing aspirations are directly proportional to demand for credit. Increased income, improved life style, & opportunity in expanding markets have
Eliminating fraud entirely is a noble idea, but not a realistic goal. According to one experienced fraud manager, "It's not a question of whether or not you are going to get hit with fraud; it's a question of how much you can lose."
A modern market economy is based on credit, where the circulation of commodities and financing are dependent on credit. In the absence of a credit culture, debts can go underpaid, lenders are troubled by arrears. As a result, huge risks face enterprises and individuals, affecting the normal functioning of the economy. Therefore, a socialist market economy has to be built on the basis of a proper Credit Registration Office. A credit registry, as a vital part in a social credit system, provides credit information that enable provider of credit or buyer of a financial product to assess the creditworthiness of the party who applies for a credit or the seller of a financial product for the benefit of preventing credit risks and maintaining financial stability.
A Credit Registration Office can be regarded as the corner stone of a modern financial system and the basis of financial stability. It is of far-reaching significance for building a credit society.
So, the most important work in building and improving a credit registration system for modern market economy is to have accurate information of corporate and personal identity, collect and keep their credit record, and use this information in a lawful way, so that contract -breaching behaviors are penalized. Promote of financial stability and development; this will create a better environment for enterprises and individuals with good credit record to grow, encourage corporate and private citizens to value a good credit record, laying a sound foundation for a good credit culture in India.
