ARCs Must Become Members of All 4 Credit Information Companies: RBI
Moneylife Digital Team 11 October 2024
Reserve Bank of India (RBI) has directed asset reconstruction companies (ARCs) to become members of all four credit information companies (CICs) and submit the requisite data to them in the prescribed format. It is being done to maintain track of borrowers' credit history after the transfer of loans by banks and non-banking finance companies (NBFCs) to ARCs, RBI says.
 
In a notification, RBI says, "ARCs should become members of all CICs and submit the requisite data to CICs as per the uniform credit reporting format prescribed by the Reserve Bank, as amended from time to time."
 
"ARCs shall keep the information collected or maintained by them, updated regularly on a fortnightly 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. ARCs shall rectify the rejected data received from CICs and upload the same with the CICs within seven days of receipt of such data," RBI says.
 
Currently, there are four CICs in India—TransUnion CIBIL, Experian Credit Information Company of India, Equifax Credit Information Services, and CRIF High Mark Credit Information Services.
 
As per the extant norms, ARCs had to be a members of at least one CIC. However, with the new notification issued by RBI, ARCs will have to obtain membership in all four CICs.
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