Credit Information Companies (N H Siddiqui Working Group)
A Credit Information Company (CIC) is an independent organization licensed by RBI that enters into an agreement with banks, NBFCs
and financial institutions (called credit institutions), as its members and aggregates data and identity information for individual
consumers and business entities, from its members.
Legal provisions : The Credit Information Companies (Regulation) Act, 2005 was operationalised with effect from December 14,
2006. In terms of Section 15(1) of the Act, every credit institution has to become member of at least one credit information
company within a period of three months from commencement of the Act or any extended time allowed by RBI on application.
As all commercial banks fall under the definition of credit institutions (Section 2 of the Act), they are required to take
membership of at least one credit information company and provide credit data (positive as well as negative) to the credit
information company in the format prescribed by the credit information company.
Sharing of credit report with customers : Section 21 of the Credit Information Companies (Regulation) Act, 2005, provides that any
person, who applies for grant or sanction of credit facility, from any credit institution, may request to such institution to furnish him a
copy of the credit information obtained by such institution from the credit information company. It also provides that every credit
institution shall on receipt of request furnish to such person a copy of the credit information subject to payment of charges specified
by RBI.
Charges for report : As per Credit Information Companies Regulations, 2006, framed under the Act, RBI has prescribed a
maximum fee of Rs. 50/- (Rupees fifty only) for the purpose.
Source of data : Members of the credit information companies, submit data of their borrowers on a regular basis which is
aggregated by the bureau and presented to its members. A credit bureau only reproduces information that is submitted by its
members.
With CIC Act coming into force, RBI advised banks (Jul 01, 2013) that consent of the borrower to share information with CIC,
prescribed earlier, need not be insisted upon by banks.
Wilful defaulters Banks/Pis are required submit the list of suit-filed accounts of wilful defaulters of Rs.25 lakh and above as at end-
March, June, September and December every year to a credit information company which has obtained certificate of registration
from RBI in terms of Section 5 of the Credit Information Companies (Regulation) Act, 2005 and of which it is a member. Credit
Information Companies have also been advised by RBI to disseminate the information pertaining to suit filed accounts of Wilful
Defaulters on their respective websites.
List of Credit Information Companies (July 2015)
1. CIBIL, 2. Experian Credit Information Company of India Private Ltd. 3. Equifax Credit Information Services Private Ltd., 4. High
Mark Credit Information Services Private Limited.
A Credit Information Company (CIC) is an independent organization licensed by RBI that enters into an agreement with banks, NBFCs
and financial institutions (called credit institutions), as its members and aggregates data and identity information for individual
consumers and business entities, from its members.
Legal provisions : The Credit Information Companies (Regulation) Act, 2005 was operationalised with effect from December 14,
2006. In terms of Section 15(1) of the Act, every credit institution has to become member of at least one credit information
company within a period of three months from commencement of the Act or any extended time allowed by RBI on application.
As all commercial banks fall under the definition of credit institutions (Section 2 of the Act), they are required to take
membership of at least one credit information company and provide credit data (positive as well as negative) to the credit
information company in the format prescribed by the credit information company.
Sharing of credit report with customers : Section 21 of the Credit Information Companies (Regulation) Act, 2005, provides that any
person, who applies for grant or sanction of credit facility, from any credit institution, may request to such institution to furnish him a
copy of the credit information obtained by such institution from the credit information company. It also provides that every credit
institution shall on receipt of request furnish to such person a copy of the credit information subject to payment of charges specified
by RBI.
Charges for report : As per Credit Information Companies Regulations, 2006, framed under the Act, RBI has prescribed a
maximum fee of Rs. 50/- (Rupees fifty only) for the purpose.
Source of data : Members of the credit information companies, submit data of their borrowers on a regular basis which is
aggregated by the bureau and presented to its members. A credit bureau only reproduces information that is submitted by its
members.
With CIC Act coming into force, RBI advised banks (Jul 01, 2013) that consent of the borrower to share information with CIC,
prescribed earlier, need not be insisted upon by banks.
Wilful defaulters Banks/Pis are required submit the list of suit-filed accounts of wilful defaulters of Rs.25 lakh and above as at end-
March, June, September and December every year to a credit information company which has obtained certificate of registration
from RBI in terms of Section 5 of the Credit Information Companies (Regulation) Act, 2005 and of which it is a member. Credit
Information Companies have also been advised by RBI to disseminate the information pertaining to suit filed accounts of Wilful
Defaulters on their respective websites.
List of Credit Information Companies (July 2015)
1. CIBIL, 2. Experian Credit Information Company of India Private Ltd. 3. Equifax Credit Information Services Private Ltd., 4. High
Mark Credit Information Services Private Limited.
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