Key Note on Master Circular – Frequency of Reporting of Credit Information
Introduction
Considering the fast turnaround time in credit underwriting processes through Digital processes, the Reserve Bank of India has made certain changes in the reporting timelines of the Credit information held between the Credit institutions (CIs) and Credit Information companies (CICs).
This reform is made with a view of providing updated/latest credit information to enable lenders to make more informed decisions.
Applicability
- All Commercial Banks (including Small Finance Banks, Local Area Banks and Regional Rural Banks, and excluding Payments Banks)
- All Primary (Urban) Co-operative Banks/State Co-operative Banks/ Central Co-operative Banks
- All-India Financial Institutions (Exim Bank, NABARD, NHB, SIDBI and NaBFID)
- All Non-Banking Financial Companies (including Housing Finance Companies)
- All Asset Reconstruction Companies
- All Credit Information Companies
Change in Reporting by Credit Institution
Provision regarding Reporting credit information by Credit Institutions to Credit Information Companies (CICs).
|
Old Provision |
New Provision |
| -Monthly, or -As Decided Between CIs and CICs |
-Fortnightly basis (i.e., as on the 15th and the last day of the respective month) |
Change in Reporting by Credit Information Companies
CICs are required to ingest credit information data received from the CIs, as per their data acceptance rules.
|
Old Provision |
New Provision |
| -within seven (7) calendar days of its receipt from the CIs. | -within Five (5) calendar days of its receipt from the CIs. |
Additional Compliance on Part of Credit Institution Companies
CICs must provide a list of CIs not adhering to these timelines to the Department of Supervision, Reserve Bank of India, at half-yearly intervals for monitoring purposes.
Penal Provision
CICs and CIs that do not follow these directives will face penal action in accordance with the provisions of the Credit Information Companies (Regulation) Act, 2005.
These instructions shall be effective from January 1, 2025. However, the CIs and CICs are encouraged to give effect to these instructions as expeditiously as feasible but not later than January 1, 2025.
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