Collecting debts in India

The BBC reports from Orissa:

A bank in India has decided to publicly shame defaulters in order to recover outstanding loans. Employees of the Urban Co-operative Bank in the eastern state of Orissa have begun staging noisy demonstrations outside the home of defaulters. Armed with posters, they kicked off the loan recovery drive outside the homes of two defaulters last week.

According to the Doing Business database, India has very poor information about credit records. Small wonder the banks are resorting to this. The more typical symptom of poor credit information systems is invisible: fewer loans, shorter terms, higher rates, and the poor excluded.