Recently, I read the above article on the net.  It mentioned that The Reserve Bank of India (RBI) has asked banks to develop a unique system of customer identification across the banking system. Clearly, we know the fundamental reason why this is required. Today, many borrowers are approaching multiple Banks to access the Banking money. Which Bank has granted the loan and which has refused it is not known to other Banks. In other words, the Borrower's borrowing history and default history is not fully available to the lending institutions.

This is changing somewhat with the entry of Bureau companies and an effort to build a central database that will help to provide such inputs. "At a seminar organised by the Credit Information Bureau on Wednesday, RBI deputy governor Anand Sinha said, "Unique customer identification in the banking system is of paramount importance. While some banks have started the unique customer identification process, this is not present across the banking system, that is, on a shared database. This could enable borrowers to circumvent guideline risk profiles and obtain multiple facilities from banks."