Govt. testing ‘big data’ system to aid banks assess credit risks

The government is testing a new system that will assist banks in assessing credit risk and the probability of fraud using big data analysis. The system is expected to help lenders, particularly rural and cooperative banks, tackle the issue of rising non-performing assets (NPAs).

The ministry sponsored project includes as partners the Reserve Bank of India (RBI), Bangalore-based IT firm Processware System and two cooperative banks.

The web-enabled software is also being tested, which when implemented will assist the banks to easily adapt the models for credit rating, non-performing assets, and fraud. Validation of the models has been done using data from several banks.

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