View of PERSON RATING SYSTEM TO TRACK INDIVIDUAL FINANCIAL AND SOCIAL BEHAVIOUR

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129 INTERNATIONAL JOURNAL OF INNOVATION IN ENGINEERING RESEARCH & MANAGEMENT ISSN: 2348-4918

Peer Reviewed and Refereed Journal

VOLUME: 10, Special Issue 02, (IC-IMAF-2023) Paper id-IJIERM-X-II, January 2023

PERSON RATING SYSTEM TO TRACK INDIVIDUAL FINANCIAL AND SOCIAL BEHAVIOUR

Sulochana Patidar, Ankit Kumar Patidar

Abstract - To solve India's finance supply and regular income problem we are suggesting one mechanism. It helps individual to generate regular income through there saving. It help a person to fight against inflation and bring Indian prosperity. India need open rating system for individual where we can track individuals financial behaviour just like Bank's and NBFC do. These types of rating system help individual to individual relations more rational and warn before any type of mishapning. This rating system reduce the burden on judicial and police system.

1 INTRODUCTION

India is one of the biggest democracies in the world. It is facing so many challenges parallelly. Most people who are working since their childhood need to work before they die because they don't have access to a proper pension or reguler income system. We need a system where we assure people can get regular income with safety.

1.1 Problem Statement:-

1) In India, there is no provision for a regular pension system except govt employees or some insurance companies' products which are very expensive. Without a proper pension system or regular income system , most people need to work after retirement age. We need to ensure the money will work for people and generate wealth.

2) In India, for general people, there is no rating system to show individual financial, criminal behavior, and general perception. It affects the business image of India.

3) In India judicial system is not efficient, for regular fund recovery if an individual depends upon the judicial system it will ruin the individual life. In courts, nearly 33 lac⁽¹⁾ check bounce cases waiting for justice. Which are increasing day by day.

4) Small business owner is in a double problem:- First, big players eatting market share.

Second, to sustain market share if a business owners gives debt to the customer, there is no guarantee of full market recovery.

5) To achieve transparency in the financial behavior of individuals, We need to require a digital mechanism.

6) Overleveraged people create problem for other:- It is generally seeing people take borrowing with their friends and relatives and and after some time refuse to return borrowed amount and if such people commit suicide, they create problems for others.

2 LITERATURE REVIEW

Credit Information Companies^{(2) (3)}:- In India, there are 4 main credit information companies working.

1 CIBIL 2 EQUIFAX 3 EXPERIAN

4 CRIF High Mark Credit Information Services.

Only banks, NBFCs, or other RBI⁽³⁾-registered financial institutions can submit the data to credit rating agencies but not individuals can submit the data to credit rating agencies.

A credit rating agency creates a great advantage for RBI-registered financial institutions. If a person or organization is a defaulter for one financial institution it will appear to all. Credit rating agencies create a safety net for financial institutions.

Credit Risk:- For lenders With every debt credit risk is associated. RBI-registered financial institutes reduce credit risk by using the Credit Information Companies database.

3 METHODS:-

3.1 Data Collection Method

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For Primary Data collection we use unstructured interview methods like Telephonic interviews and Face to Face interviews.

In an interview, we ask two types of questions open-ended questions and close-ended questions. Type of questions Open-ended or Close-ended depends upon the flow of the interview.

For some insight, we use the observation method.

For the interview Subject matter expert, businessmen, employees, farmers, etc type of people we interviewed.

To generate a solution we use Six Sigma's DMADV(D- Define, M- Measure, A- Analyse, D- Develop, V-Verify) method.

To generate our mobile app solution we use Android as a front end and use Firebase to store data.

4 RESULTS

After so many rounds of discussion with so many people, we understood the personal rating system is needed by today's Indian population.

If we develop a system like a credit information company where individual people can report their financial misconduct like check bounce, negotiable instrument act cases, commitment failure, etc.

Features of the suggested system would be:-

1. Accessible by all individuals or organization who doesn't have the RBI license.

2. It takes feedback from individuals and generates reports.

We developed one mobile application which is available on the play store. The name of the application is "Finco". It is a prototype and available for beta testing. The link to the mobile application is:-https://play.google.com/store/apps/details?id=com.sankalp.finco

By using "Finco" mobile app one can rate individual behavior and report check bounce or any type of comment he/ she.

5 DISCUSSION

Rating is associated with mobile number. We assume people not changing mobile numbers frequently. After some time we will try to include the eKYC feature. So that if anyone changes the number it will traceable.

6 CONCLUSION

We know our system is in a very early stage and near future it will face many legal and regulation-related challenges. It is the first stage prototype as market demand will grow we can add many features as per requirement like eKYC, payment method, tracking of people, etc.

Education, awareness, and use of such kind of system make society more transparent and safe.

REFERENCES

1. URL:-https://timesofindia.indiatimes.com/india/why-bounced-cheques-are-indias- biggest-legal-mess/articleshow/94815512.cms Description:- Website link which are showing pending court cases in India. Accessed Date:- 15/01/2023 18:39 IST.

2. URL:- https://www.paisabazaar.com/credit-score/credit-information-companies- india/ Description:- Website link which are showing List of credit rating agencies in India. Accessed Date:- 17/01/2023 00:34 IST.

3. URL:- https://www.rbi.org.in/scripts/PublicationReportDetails.aspx?UrlPage=&ID=76 Description:- Website link which are showing RBI report on credit information companies. Accessed Date:- 17/01/2023 00:54 IST.

4. URL:

https://www.investopedia.com/terms/c/creditrisk.asp#:~:text=Credit%20risk%20is%

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20the%20possibility,and%20increased%20costs%20for%20collection. Description:- Website link which are showing credit risk. Accessed Date:- 17/01/2023 01:05 IST.