All Credit Institution Should be Member of all Credit Information Company

Like CIBIL there are more three cred­it infor­ma­tion com­pa­nies in India, Viz, Equifax Cred­it Infor­ma­tion Ser­vices Pri­vate Lim­it­ed, Exper­ian Cred­it Infor­ma­tion Com­pa­ny of India Pri­vate Lim­it­ed and CRIF High Mark Cred­it Infor­ma­tion Ser­vices Pri­vate Lim­it­ed. Cred­it Com­pa­nies was shar­ing Cred­it Infor­ma­tion with only one Cred­it Infor­ma­tion Com­pa­ny which could not deliv­er the actu­al pic­ture of cred­it infor­ma­tion of bor­row­er, thus RBI Directs to share Cred­it infor­ma­tion by Cred­it Insti­tutes with all the four Cred­it Infor­ma­tion Companies.

 RBI/2014–15/458 DNBR(PD).CC.No 019/03.10.01/2014–15 Feb­ru­ary 6, 2015

 Mem­ber­ship of Cred­it Infor­ma­tion Com­pa­nies (CICs)

Please refer to cir­cu­lar DNBS (PD).CC. No 200 /03.10.001/2010–11 dat­ed Sep­tem­ber 17, 2010 and DNBS (PD).CC. No 407/03.10.01/2014–15 dat­ed August 20, 2014 advis­ing all NBFCs to become a mem­ber of at least one Cred­it Infor­ma­tion Com­pa­ny (CIC) and pro­vide cred­it data in the pre­scribed for­mat to CIC.

  1. Present­ly, four CICs, viz. Cred­it Infor­ma­tion Bureau (India) Lim­it­ed, Equifax Cred­it Infor­ma­tion Ser­vices Pri­vate Lim­it­ed, Exper­ian Cred­it Infor­ma­tion Com­pa­ny of India Pri­vate Lim­it­ed and CRIF High Mark Cred­it Infor­ma­tion Ser­vices Pri­vate Lim­it­ed have been grant­ed Cer­tifi­cate of Reg­is­tra­tion by RBI. In terms of Sec­tion 15 of the Cred­it Infor­ma­tion Com­pa­nies (Reg­u­la­tion) Act, 2005 (CICRA), every Cred­it Insti­tu­tion shall become mem­ber of at least one CIC. Fur­ther, Sec­tion 17 of CICRA stip­u­lates that a CIC may seek and obtain cred­it infor­ma­tion from its mem­bers (Cred­it Insti­tu­tion / CIC) only. As a result, when a Spec­i­fied User, as defined in CICRA and Cred­it Infor­ma­tion Com­pa­nies Reg­u­la­tions, 2006, obtains cred­it infor­ma­tion on a par­tic­u­lar borrower/client from a CIC, it gets only such infor­ma­tion that has been pro­vid­ed to the CIC by its mem­bers. This does not include cred­it his­to­ry relat­ed to those non-mem­ber Cred­it Insti­tu­tions with which the borrower/client has/had a cur­rent or a past expo­sure. To over­come this prob­lem of incomplete/inaccurate cred­it infor­ma­tion, pros and cons of cer­tain pos­si­ble alter­na­tives have been dis­cussed in the Report of the Com­mit­tee to Rec­om­mend Data For­mat for Fur­nish­ing of Cred­it infor­ma­tion to Cred­it Infor­ma­tion Com­pa­nies (Chair­man: Shri Aditya Puri) con­sti­tut­ed by the Reserve Bank of India (RBI). The report of the com­mit­tee can be accessed on the fol­low­ing URL:

http://rbi.org.in/scripts/PublicationReportDetails.aspx?UrlPage=&ID=763

These alter­na­tives along with suggestions/comments obtained from IBA and the CICs have been exam­ined by RBI. It has been decid­ed that the best option would be to man­date all Cred­it Insti­tu­tions to become mem­bers of all CICs and mod­er­ate the mem­ber­ship and annu­al fees suit­ably. These instruc­tions would be reviewed in due course.

  1. Atten­tion is also invit­ed to the direc­tive issued under CICRA Sec 11(1) by the Bank vide DBR.No.CID.BC.59/20.16.056/2014–15 dat­ed Jan­u­ary 15, 2015 (copy enclosed). Accord­ing­ly all NBFCs are direct­ed to com­ply with the direc­tive and become mem­ber of all CICs and sub­mit data (includ­ing his­tor­i­cal data) to them.

Yours faith­ful­ly,

(A. Man­gala­giri)

Gen­er­al Manager-in-Charge

DBR.No.CID.BC.59/20.16.056/2014–15

Jan­u­ary 15, 2015

In exer­cise of the pow­ers con­ferred by sub-sec­tion (1) of Sec­tion 11 of Cred­it Infor­ma­tion Com­pa­nies (Reg­u­la­tion) Act, 2005, Reserve Bank of India, being sat­is­fied that it is nec­es­sary and expe­di­ent in the pub­lic inter­est, here­by directs that with­in three months from the date of this directive,

(i) All Cred­it Insti­tu­tions (CIs) shall become mem­bers of all CICs and sub­mit data (includ­ing his­tor­i­cal data) to them. Fur­ther, CICs and CIs shall keep the cred­it infor­ma­tion collected/maintained by them, updat­ed reg­u­lar­ly on a month­ly basis or at such short­er inter­vals as may be mutu­al­ly agreed upon between the CI and the CIC in terms of Reg­u­la­tion 10 (a) (i) and (ii) of the Cred­it Infor­ma­tion Com­pa­nies Reg­u­la­tions, 2006.

(ii) As a con­se­quence of (i) above, one-time mem­ber­ship fee charged by the CICs, for CIs to become their mem­bers, shall not exceed Rs.10,000 each. The annu­al fees charged by the CICs to CIs shall not exceed Rs.5000 each.

(N.S. Vish­wanathan) Exec­u­tive Director

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