In a groundbreaking move this May, the Reserve Bank of India (RBI) has greenlit the use of AI-based credit scoring models to serve new-to-credit (NTC) borrowers—especially gig workers, students, and rural citizens. Unlike traditional CIBIL scores, these AI models analyze mobile payment history, digital footprint, and utility bill payments to generate dynamic, real-time scores. 🤖📱
This is expected to unlock formal credit for over 30 million Indians who previously had limited or no access to loans. NBFCs and digital lenders are already integrating this with their apps, making micro-loans and credit cards more accessible. With appropriate safeguards, this initiative could redefine financial inclusion across Bharat. 🇮🇳💳
