New Delhi, Feb. 19 -- The Union government plans to launch a Grameen Credit Score system within six months, mirroring the MSME credit framework, to boost formal lending to farmers, self-employed individuals, and self-help groups (SHGs), two people familiar with the matter toldMint.

The government is working with public-sector banks and the Indian Banks' Association (IBA) to develop the framework. It will assess rural borrowers' creditworthiness based on digital transaction data, government subsidy receipts, and Unified Payments Interface (UPI) activity, the people mentioned above said on condition of anonymity.

Like the Micro, Small and Medium Enterprises MSME model, the rural credit score will incorporate alternative financial indicato...