On Oct. 10, IND RBI implemented new credit reporting mechanism.
IND RBI directed credit information companies (CICs), credit institutions (CIs) to implement credit information reporting mechanism post-cancelation of license/ certificate of registration (CoR) for banks/non-banking financial companies (NBFCs).
The purpose of these directions is to redress the hardship faced by certain borrowers.
Implementation
Canceled CIs are categorized as credit institutions under Credit information companies (regulation) act, 2005; CIs must report credit information of borrowers onboarded before the license/CoR cancelation until the loan ends or the CI is wound up.
These CIs can access credit information reports for onboarded borrowers.
CICs will waive annual, membership fees for these CIs; CICs will tag such CIs as license canceled entities in records, based on IND RBI's website or cancelation orders.
All other instructions re credit information reporting by CIs to CICs remain unchanged.
Effectiveness
Instructions must be implemented by 6 months of circular's date, i.e. Apr. 10, 2025.
