Master Direction: Credit Information Reporting

Question 1

Released when

Answer 1

January 6, 2025

Question 2

Full Name

Answer 2

Master Direction - Reserve Bank of India (Credit Information Reporting) Directions, 2025

Question 3

Purpose

Answer 3

• Consolidating its various guidelines for banks and financial institutions regarding the reporting of Customer Credit Information (CCI)
• to establish a standardized framework for the reporting and dissemination of credit information, ensure the confidentiality and security of sensitive credit data, and address other related objectives

Question 4

Issued these directions in the exercise of the powers conferred under ______

Answer 4

Section 11 of the Credit Information Companies (CICs) (Regulation) Act, 2005

Question 5

Key points

Answer 5

• Credit Information Companies are required to notify customers via Short Message Service (SMS) or E-mail whenever their Credit Information Report (CIR) inquiry is reflected in the customer’s CIR.
• Credit Institutions (CIs), including banks and NBFCs must inform customers if the reasons for rejecting their requests for data correction, if applicable, to help them better understand the issues in their CIR
• Complaints are entitled to a compensation for Rs. 100 per calendar day if their complaint is not resolved within thirty (30) calendar days from the date of the initial filing with a CI or CIC.

Question 6

RBI has mandated that all lenders must update credit bureau records every ______, effective January 1, 2025

Answer 6

15 days

Question 7

About Credit Information Companies

Answer 7

• CICs collect public data, credit transactions, and payment histories of people and businesses, mainly for loans and credit cards.
• They collect data from banks, financial institutions, lenders, and other credit-granting entities, and then compile it into credit reports.
• Banks and financial institutions use CIC reports and scores to evaluate your credit-worthiness before approving loans or credit cards.
• CICs in India are licensed by RBI and regulated by the Credit Information Companies Regulation Act, 2005 (CICRA), and RBI guidelines.
  ✓ Under Section 15 of CICRA, every credit institution, such as banks, must be a member of at least one CIC.
  ✓ The act states that a CIC can only obtain information from its member institutions.

Question 8

India currently has only ____ credit information companies registered with the RBI.

Answer 8

4

1. Credit Information Bureau (India) Limited (CIBIL)
2. Equifax Credit Information Services Private Limited
3. Experian Credit Information Company of India Private Limited
4. CRIF High Mark Credit Information Services Private Limited