Information Sharing
Give credit information cos data even if licence cancelled, RBI tells lenders
This story was originally published at 19:30 IST on 10 October 2024
Register to read our real-time news.Informist, Thursday, Oct. 10, 2024
MUMBAI – The Reserve Bank of India has asked all lenders to continue reporting data to credit information companies even after the cancellation of their licences or registration certificates, according to a notification on Thursday. The guidelines have to be implemented within the next six months, the notification said.
"The guidelines state that the lenders will continue to report credit information of the borrowers on-boarded and reported to CICs (credit information companies) prior to cancellation of their licence or CoR (certificate of registration) to all the four CICs till the loan lifecycle is completed, or the credit institution is wound up, whichever is earlier," the notification said.
The revision was brought about because as per the provisions of the Credit Information Companies (Regulation) Act, entities whose licence or registration certificate was cancelled by the central bank were no longer deemed as credit institutions and, hence, the data provided by them to credit information companies was also not accepted. Due to this, the repayment history of the borrowers of these lenders was not updated even if they had continued to repay or clear their dues, according to the notification.
The notification said that credit information companies would not charge annual and membership fees from such lenders, and they would be tagged as 'licence cancelled entities' in the credit information report.
It also said that the guidelines would be applicable to all lenders whose licence or certificate of registration was cancelled before the issuance of the notification. All other instructions regarding credit information reporting by lenders to credit information companies remain unchanged. End
Reported by Kshipra Petkar
Edited by Avishek Dutta
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2024. All rights reserved.
To read more please subscribe
Share this Story:
