The Chief Minister A. Revanth Reddy-led Congress government, in its TG Rising 2047 Vision, proposes an information bureau that will use alternative datasets such as property registration and electricity payments to generate individual credit scores.
It will be a consent-based digital clearinghouse that will draw on alternative data and generate verifiable individual credit histories, expanding access to formal low-cost credit for credit-invisible households.
Proposed as a measure to bridge the gap that exists in formal access to credit, the Telangana Information Bureau (TIB) will be a “secure data infrastructure that will protect privacy and be research-driven”. It will integrate validated administrative data sets such as property registration, electricity payments, social security transfers and tax records to create alternative credit scores for individuals and businesses.
The idea is to develop a composite alternative credit score using expert-led analytics that transforms raw data into anonymized financial signals and uses it to expand formal access to credit for individuals without CIBIL scores, especially self-help group members and low-income households.
However, to ensure the progress of financial inclusion along with data protection, only the derived score and not the underlying data will be shared with lenders, the draft document showed.
Non-credit data such as utility bill payments, e-commerce transactions and government tax payment records will be integrated with TIB to assess individual payment discipline. Analytics will enable lenders to serve new borrowers with confidence with richer real-time financial behavior information.
In terms of privacy and data protection, the state plans to maintain strong regulatory oversight in collaboration with the RBI for transparency and consumer protection. Robust legal standards will be put in place to ensure that personal data is only shared with informed consent, with strict controls against misuse or predatory lending.
The TIB will operate as a utility-style not-for-profit entity and evolve over time into a data-driven national financial inclusion model that supports credit expansion, social security targeting and risk-based subsidy programs. It will position Telangana as a pioneer of evidence-based and privacy-respecting inclusive financial systems.
It will act as a financial inclusion case under the Telangana Data Exchange (TGDeX) recently launched by the IT Department and leverage its data banks, AI model repository and sandbox IDE to securely access, process and analyze anonymized datasets.
According to the government, the journey to comprehensive financial inclusion has entered a crucial phase rich in opportunities for deepening financial empowerment at the household level. The next frontier is not only expanding access, but also increasing the quality, affordability and individualization of credit, enabling low-income households, especially women, to move from group to individual, data-based and low-cost credit pathways through formal institutions.
Published – 27 Nov 2025 21:24 IST
