New Delhi, August 8
The Reserve Bank of India (RBI) has reduced the mandated frequency of reporting of credit information by Credit Institutions to Credit Information Companies.
The reporting of credit information will have to be shared fortnightly effective January 1, 2025, instead of the current practice of monthly by lenders. However, the CIs and CICs are encouraged to give effect to these instructions as expeditiously as feasible but not later than January 1, 2025.
"CICs shall provide a list of CIs which are not adhering to the fortnightly data submission timelines to Department of Supervision, Reserve Bank of India, Central Office at half yearly intervals (as on March 31 and September 30 each year) for information and monitoring purposes," RBI said.
RBI said considering the faster turnaround time in credit underwriting through digital processes, it is imperative that the Credit Information Reports (CIRs) provided by CICs reflect a more current information, enabling lenders to make informed credit decisions.
In a notification by the RBI on Thursday, it was directed that CICs and CIs shall keep the credit information collected/maintained by them updated regularly on a fortnightly basis (as on 15th and last day of the respective month) or at such shorter intervals as mutually agreed upon between the CI and the CIC.
The fortnightly submission of credit information by CIs to CICs shall be ensured within seven (7) calendar days of the relevant reporting fortnight, RBI said in the notification.
Further, CICs were earlier required to ingest credit information data received from the CIs, as per their data acceptance rules, within seven calendar days of its receipt from the CIs. This is now being revised to five calendar days of its receipt.
CICs and CIs that contravene or default in adherence to the above directions shall be liable for penal action as per the provisions of CICRA (Credit Information Companies (Regulation) Act, 2005)," RBI said.