New Delhi, Sept. 17 -- In a landmark clarification, the Finance Ministry recently stated that first-time borrowers should not be denied credit simply for lacking a credit history. This builds on the RBI's consistent push toward financial inclusion and opens the door to a credit ecosystem that values potential as much as past records.

The truth is that millions of Indians remain "credit invisible" because of rigid legacy scoring models. This is a welcome move, creating an opportunity for India to evolve into an inclusive economy where finance becomes the foundation for opportunity, innovation, and growth.

Creditworthiness has traditionally been measured by repayment history. But, in a recent TransUnion CIBIL report, nearly 30% of Indians...