**Policy Summary:**
This circular, RBI/2017-18/35 DBR.CID.BC.No.7920/16.042/2017-18, issued by the Reserve Bank of India (RBI) on August 2, 2017, addresses the issue of comprehensive Credit Information Reports (CIRs) provided by Credit Information Companies (CICs) to Credit Institutions (CIs). The circular clarifies and reinforces the directive outlined in circular DBOD.No.CID.BC.127/20.16.056/2013-14 dated June 27, 2014, which mandates that CICs include information on all accounts, both current and past, of a customer with multiple borrowings in their CIR.
The circular notes that some CICs offer limited versions of CIRs based on specific modules (e.g., commercial, consumer, or MFI data) and charge differential rates for these reports. The RBI expresses concern that these limited CIRs may prevent lenders from accessing the borrower's complete credit history, potentially leading to flawed credit decisions.
Therefore, the circular directs CICs to ensure that the CIR furnished to a CI incorporates *all* available credit information across *all* modules (e.g., consumer, commercial, and MFI) pertaining to the borrower.
This directive is issued under subsection (1) of Section 11 of the Credit Information Companies Regulation Act, 2005.
The issuing authority is Prakash Baliarsingh, Chief General Manager.
Key Entities Referenced
Reserve Bank of India: The central bank of India, often referred to as RBI.
Credit Information Companies: Organizations that collect and provide credit information on borrowers.
Credit Information Report: A report containing credit information on a borrower, used by lenders to assess creditworthiness.
Credit Institutions: Entities that provide credit, such as banks and other lending organizations.
DBOD.No.CID.BC.12720.16.056201314: Reference number of a previous circular issued by the RBI.
Credit Information Companies Regulation Act, 2005: The legislation governing the regulation of credit information companies in India.
Prakash Baliarsingh: Chief General Manager at Reserve Bank of India
Section 11 of the Credit Information Companies Regulation Act, 2005: The specific section of the Credit Information Companies Regulation Act, 2005 under which the directions are issued.
RBI/2017-18/ 35
DBR.CID.BC.No.79/20.16.042/2017-18 August 2, 2017
All Credit Information Companies
Dear Sir/Madam
Issue of comprehensive Credit Information Reports
Please refer to para (v) of Annex IV to our circular
DBOD.No.CID.BC.127/20.16.056/2013-14 dated June 27, 2014 advising Credit
Information Companies (CICs) to include information on all accounts, both current
and past, of a customer having multiple borrowings, in her/his Credit Information
Report (CIR).
2. It is observed, however, that some CICs are following the practice of offering
limited versions of CIRs to Credit Institutions (CIs) based on credit information
available in specific modules such as commercial data, consumer data or MFI data.
Accordingly, CICs are charging differential rates for such specific reports.
3. As the limited versions of CIRs based on the credit information on a borrower
available in a specific module capture only the credit information of the borrower
available in the particular module, the lenders may remain unaware of the entire
credit history of the borrower, if any, available in other modules. This can adversely
affect the quality of credit decisions of the CIs.
4. CICs are, therefore, directed to ensure that the CIR in respect of a borrower,
furnished to the CI, incorporates all the credit information available in all modules,
e.g. consumer, commercial and MFI, etc., in respect of the borrower.5. These directions are issued under sub-section (1) of Section 11 of the Credit
Information Companies (Regulation) Act, 2005.
Yours faithfully
(Prakash Baliarsingh)
Chief General Manager