Submission of information to Credit Information Companies (CICs) by ARCs - 10th October 2024 - Reserve Bank of India - Gazette Notification PDF
Issued by Reserve Bank of India
Read or download the official PDF of this gazette notification issued by the Reserve Bank of India on 10th October 2024.
Executive Summary & Key Takeaways
Executive Summary: This circular from the Reserve Bank of India revises guidelines for Asset Reconstruction Companies (ARCs) regarding the submission of information to Credit Information Companies (CICs). ARCs must become members of all CICs and submit data in the prescribed format. Compliance with these guidelines must be ensured by January 1, 2025.
Key Points / Main Content:
Membership and Data Submission:
- ARCs must become members of all CICs.
- Data must be submitted to CICs as per the Uniform Credit Reporting Format.
- Information must be updated regularly, at least fortnightly, or at shorter intervals as agreed upon with the CIC, with updates starting no later than January 1, 2025.
Data Rectification:
- Rejected data received from CICs must be rectified and re-uploaded within seven days of receipt.
Best Practices:
- ARCs must establish a Standard Operating Procedure (SOP) for CIC-related matters, including:
- Providing requisite customer information, including identifiers, to CICs.
- Ensuring regular updates of records submitted to CICs, including repayment information.
- Centralizing the issuance of no-objection certificates and providing information to CICs to avoid non-updation of repayment information.
- Appointing a nodal officer for dealing with CICs.
- Prioritizing customer grievance redressal, especially regarding credit information updates or alterations.
- Integrating grievance redressal for credit information with existing systems.
- Adhering to the timelines stipulated under the Credit Information Companies (Regulation) Act, 2005 (CICRA) and related rules for updating/altering credit information and resolving disputes.
Impact Analysis:
ARCs:
- Impact: ARCs are required to enhance their data reporting and management processes to comply with the revised guidelines, which includes becoming members of all CICs, updating data more frequently, and improving grievance redressal mechanisms.
- Action Required: ARCs must put in place systems and processes to ensure compliance with the guidelines by January 1, 2025, including establishing an SOP, appointing a nodal officer, and integrating grievance redressal systems.
Key Entities Referenced
Reserve Bank of India: The central bank of India, which issued the circular.
Asset Reconstruction Companies: Financial institutions that acquire and resolve non-performing assets (NPAs) from banks and other financial institutions.
Credit Information Companies: Companies that collect and maintain credit information on borrowers.
Uniform Credit Reporting Format: The standardized format prescribed by the Reserve Bank of India for submitting data to Credit Information Companies.
Credit Information Companies Regulations, 2006: Regulations governing the operations of Credit Information Companies in India.
Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002: Indian law that provides the legal framework for securitization and asset reconstruction.
Mumbai, Maharashtra: Location of the Central Office of the Department of Regulation, Reserve Bank of India
J.P. Sharma: Chief General Manager at Reserve Bank of India who signed the circular.
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भारतीय �रज़व र् बकैं
RESERVE BANK O F INDIA
RBI/2024-25/82
DoR.FIN.REC.No.46/26.03.001/2024-25 October 10, 2024
All Asset Reconstruction Companies (ARCs)
Dear Sir/ Madam,
Submission of information to Credit Information Companies (CICs) by ARCs
In terms of circular no. DNBS (PD-SC/RC). CC. No. 23/26.03.001/2010-11 dated
November 25, 2010 on ‘Submission of information to Credit Information Companies’1,
ARCs had been advised to become a member of at least one CIC. In order to align these
guidelines with the guidelines applicable to banks and NBFCs and with a view to maintain
a track of borrowers’ credit history after transfer of loans by banks and NBFCs to ARCs,
these guidelines have been revised as under.
2. Membership of CICs: ARCs shall become members of all CICs and submit the
requisite data to CICs as per the Uniform Credit Reporting Format prescribed2 by the
Reserve Bank, as amended from time to time.
3. Submission of information: ARCs shall keep the information collected/ maintained
by them, updated regularly on a fortnightly3 basis or at such shorter intervals as mutually
agreed upon between the ARC and the CIC in terms of Regulation 10 (a) (i) and (ii) of the
Credit Information Companies Regulations, 2006.
1 Subsumed under Master Direction – Reserve Bank of India (Asset Reconstruction Companies) Directions,
2024 dated April 24, 2024
2 Vide Circular No. DBOD.No.CID.BC.127/20.16.056/2013-14 dated June 27, 2014 on ‘Data Format for
Furnishing of Credit Information to Credit Information Companies and other Regulatory Measures’
3 This information shall be updated at fortnightly interval latest by January 1, 2025 in terms of guidelines
issued vide Circular dated August 8, 2024 on ‘Frequency of reporting of credit information by Credit
Institutions to Credit Information Companies’
िविनयमन िवभाग, केंद्रीय कायार्लय, िद्वतीय तल, मु� भवन, शहीद भगत िसंह रोड, फोटर्, मुंबई-400001
Department of Regulation, Central Office, 2nd Floor, Main Building, Shaheed Bhagat Road, Fort, Mumbai-400 001
Email: cgmicdor@rbi.org.in
िह�ी आसान ह,ै इसका प्रयोग बढाइए।4. Rectification of rejected data: ARCs shall rectify the rejected data received from CICs
and upload the same with the CICs within seven days of receipt of such data.
5. Adoption of best practices: ARCs shall have a standard operating procedure (SOP)
in place for CIC related matters which shall, inter alia, include the following best practices:
(i) ARCs shall provide requisite customer information, including identifier information,
to CICs.
(ii) ARCs shall ensure that the records submitted to CICs are updated regularly and
that no instances of repayment, including that of the last instalment, are left
unreported.
(iii) Instances of non-updation of repayment information may be avoided by
centralising the issue of no-objection certificates and providing information to CICs.
(iv) ARCs shall appoint a nodal officer for dealing with CICs.
(v) Customer grievance redressal shall be given top priority especially in respect of
complaints relating to updation/ alteration of credit information.
(vi) Grievance redressal in respect of credit information should be integrated with the
existing systems, if any, for grievance redressal.
(vii) ARCs should abide by the period stipulated under CICRA and the Rules and
Regulations framed thereunder in respect of updation, alteration of credit
information, resolving disputes, etc. Procedure prescribed under Rules 20 and 21
of the Credit Information Companies Rules, 2006 in this regard should be adhered
to. Deviations from stipulated time limits should be monitored and commented
upon in the periodical reports/ reviews put up to the Board.
26. Powers exercised
This circular has been issued in exercise of the powers conferred by Section 12 of the
Securitisation and Reconstruction of Financial Assets and Enforcement of Security
Interest Act, 2002 (54 of 2002).
7. Applicability
These guidelines shall be applicable to all ARCs.
8. Commencement
ARCs shall put in place system and processes to ensure compliance with these
guidelines latest by January 1, 2025.
Yours faithfully,
(J.P. Sharma)
Chief General Manager
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