Submission of data to Credit Information Companies Format of data to be submitted by Credit Institutions

 Submission of data to Credit Information Companies Format of data to be submitted by Credit Institutions

RBI / 2010-11 /207

DNBS.(PD).CC. No. 200 /03.10.001/2010-11

September 17, 2010

To All Non-Banking Financial Companies 

including Residuary Non-Banking Companies

Dear Sirs,

Submission of data to Credit Information Companies Format of data to 

be submitted by Credit Institutions

In terms of Section 2(f) (ii) of the Credit Information Companies (Regulation) Act, 2005, a non-banking financial company as defined under clause (f) of Section 45-I of the Reserve Bank of India Act, 1934 has also been included as “credit institution”. Further, the Credit Information Companies (Regulation) Act provides that every credit institution in existence shall become a member of at least one credit information company. Thus all NBFCs being credit institutions are required to become a member of at least one credit information company as per the statute.

2. In this regard, in terms of sub-sections (1) and (2) of Section 17 of the Credit Information Companies (Regulation) Act, 2005, a credit information company may require its members to furnish credit information as it may deem necessary in accordance with the provisions of the Act and every such credit institution has to provide the required information to that credit information company. Further, in terms of Regulation 10 (a) (ii) of the Credit Information Companies Regulations, 2006, every credit institution shall:

(a) keep the credit information maintained by it, updated regularly on a monthly basis or at such shorter intervals as may be mutually agreed upon between the credit institution and the credit information company; and 

(b) take all such steps which may be necessary to ensure that the credit information furnished by it, is update, accurate and complete.

3. It is therefore, advised that NBFCs which have become member /members of any  new credit information company / companies may provide them the current data in the existing format. Such NBFCs may also provide historical data in order to enable the new credit information companies to validate their software and develop a robust database. Care should be taken to ensure that no wrong data / history regarding borrowers is given to Credit Information Companies.

Yours faithfully,

 (Uma Subramaniam)    

Chief General Manager In-Charge