RBI’s Direction To Credit Information Companies

October 28, 2023

GS Paper III Indian Economy

Context:

The Reserve Bank of India (RBI) has directed Credit Information Companies (CICs) to alert customers when Credit Institutions access their Credit Information Report (CIR).

RBI’s Directive on CIR Access

The Credit institutions such as banks and NBFCs will also have to send an SMS or email alert to customers when they submit information to CICs on their default or Days Past Due (DPD) on existing credit.
The new rules will come into effect within six months.
The RBI has said that CICs should provide easy access to a “Free Full Credit Report (FFCR),” including credit score, once every calendar year.

What are the Credit Information Companies (CICs)?

Credit Information Companies maintain and analyze the consumer and business credit information of individuals and companies across the country, as provided by banks and NBFCs.
Based on this information, a CIC calculates and generates credit scores for individuals and credit ranks for companies as per their creditworthiness and past credit history.
Trans Union CIBIL Ltd, Equifax India, and CRIF High Mark are some prominent CICs in India.
Where scores are awarded in the range of 300 and 850, and a score of 700 or above is generally considered good.

Source: Indian Express

To get PDF version, Please click on "Print PDF" button.

Recent Post
Most Viewed Post

Restructuring of National Testing Agency (NTA)

Bank Credit to Women Self-Help Groups

WHO-GARDP Report on Antibiotic Shortages

Assam Bird Sanctuary

New Undersea Cables to Boost India’s Digital Connectiv...

NATIONAL Commission for Women (NCW)

Social Stock Exchange

Data Point

Arsenic and Fluoride In Groundwater

WHO Launches ICD 11 – A Traditional Medicine Module 2:...

Prime- Minister’s Egypt State Visit

Drug Controller General of India

Recent Editorial

Improving the Capability of the Indian State

Reforming Agriculture Marketing

Why India needs to Relook its Strategy to Revive M...

On India-China Talks, Ties

The Resilience of Democracy

Should Legislatures in India have Fixed Tenures?

Popular current affairs

Restructuring of National Testing Agency (NTA)

Bank Credit to Women Self-Help Groups

WHO-GARDP Report on Antibiotic Shortages

Assam Bird Sanctuary

New Undersea Cables to Boost India’s Digital...

NATIONAL Commission for Women (NCW)

Our Courses

Our Courses

Need help preparing for UPSC or State PSCs?

Connect with our experts to get free counselling & start preparing

THE MOST
LEARNING PLATFORM

Learn From India's Best Faculty

Contact Details

THE MOST
LEARNING PLATFORM

Learn From India's Best Faculty

Follow Us:

Contact Details

Download Our App