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Date: 2024-04-30 Category: Not Applicable State: Union Government Country: India

Credit Information Companies (Amendment) Regulations, 2017

Issued by Reserve Bank of India · Not Applicable

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Executive Summary & Key Takeaways

**Executive Summary** The document is a notification from the Reserve Bank of India regarding amendments to the Credit Information Companies Regulations, 2006. The amendments are titled "Credit Information Companies (Amendment) Regulations, 2017" and became effective on the date of publication in the official gazette (August 25, 2017). The amendment includes redefining "companies" as "persons," and adding details about an information utility and a resolution professional. **Key Points / Main Content** * **Short Title and Commencement** * These regulations are called the "Credit Information Companies (Amendment) Regulations, 2017." * The regulations are effective from the date of their publication in the official gazette. * **Amendment of Regulation 3** * Replaces the words "following companies" with "following persons" in regulation 3 of the Credit Information Companies Regulations, 2006. * Adds two new clauses after clause (g): * "(h) an information utility as defined in the Insolvency and Bankruptcy Code, 2016 (Act 31 of 2016)" * "(i) a resolution professional appointed under the Insolvency and Bankruptcy Code, 2016 (Act 31 of 2016), in so far as the credit information of the corporate debtor, in respect of which he has been so appointed." **Impact Analysis** **Credit Information Companies** * **Impact**: Companies have to update their understanding of the regulation to include persons. They need to be aware of the inclusion of information utility and resolution professional. * **Action Required**: Need to update their definitions, processes, and systems to accommodate the new clauses (h) and (i) and to align with the Insolvency and Bankruptcy Code, 2016. **Information Utilities and Resolution Professionals** * **Impact**: Inclusion in the Credit Information Companies Regulations. They will be considered as "persons", which brings them under the purview of the regulation. * **Action Required**: Must be aware of the requirements and responsibilities imposed by the Credit Information Companies Regulations, particularly regarding credit information. **Corporate Debtors** * **Impact**: Credit information will be accessible by resolution professionals in cases of insolvency, impacting their ability to restructure debt. * **Action Required**: None explicitly stated, but should be aware that resolution professionals may access their credit information during insolvency proceedings.

Key Entities Referenced

Credit Information Companies (Regulation) Act, 2005: The primary legislation empowering the Reserve Bank of India to regulate credit information companies. Credit Information Companies Regulations, 2006: The regulations being amended by this notification, governing the operation of credit information companies. Credit Information Companies (Amendment) Regulations, 2017: The amendment regulations introduced by the Reserve Bank of India. Insolvency and Bankruptcy Code, 2016: Code that defines Information Utility and Resolution Professional which are added as entities to regulation 3. Reserve Bank of India: The regulator issuing the notification and responsible for the amendment.
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