RBI/2004/226
DBOD No. DL.BC.95/20.16.002/2003-04 June
17, 2004 All Scheduled Commercial Banks (excluding RRBs) and
Notified
All-India Financial Institutions and
State Financial Corporations Dear
Sir Annual Policy Statement for the year 2004-05 – Dissemination
of credit information – Role of CIBIL Please refer to
paragraph 124 of the Annual Policy Statement for the year
2004-05 on dissemination of credit information enclosed to the Governor’s letter
No.MPD.BC.249/07.01.279/2003-04
dated May 18, 2004. 2. With effect from March 2003,
dissemination of credit information covering data supplied on suit-filed defaulters
in the financial system is being undertaken by Credit Information Bureau (India)
Ltd. (CIBIL). Accordingly, such data can now be accessed on CIBIL’s website. 3. The
Reserve Bank had issued instructions to banks and financial institutions (FIs)
vide circulars DBOD No.DL.BC.29 and 70/20.16.002/2002-03 dated October 1, 2002
and February 10, 2003, respectively, to obtain the consent of all their borrowers
(and not only defaulters) for pooling of data for development of a comprehensive
credit information system. However, many banks have not taken effective measures
to comply with the instructions in a comprehensive manner, which is a matter of
serious concern. The development of an efficient credit information system is
considered critical for the development of a sound financial system. Hence, we
advise that the Boards of banks/FIs should review the measures put in place by
their banks/FIs for furnishing credit information in respect of all borrowers
to CIBIL and report compliance to Reserve Bank of India, Department of Banking
Operations and Development, Central Office, World Trade Centre, Mumbai – 400 005. 4. Please
acknowledge receipt. Yours faithfully (C.
R. Muralidharan)
Chief General Manager-in-Charge
Dissemination
of Credit Information – Role of CIBIL 124.
Since June 2002, compilation and dissemination of credit information covering
data on defaults to the financial system have been taken over by Credit Information
Bureau of India Ltd. (CIBIL) from RBI. The Reserve Bank had issued instructions
to banks/FIs to obtain the consent of all their borrowers for dissemination of
credit information to enable CIBIL to compile and disseminate credit information.
However, many banks have not taken effective measures to comply with the instructions
in a comprehensive manner which is a matter of concern. The Reserve Bank accords
highest priority to the development of an efficient credit information system
and would be closely monitoring the progress in this regard. With a view to developing
a sound financial system, it is proposed that: The
Boards of banks/FIs should review the measures taken for furnishing credit information
in respect of all borrowers to CIBIL and report compliance to RBI.
Credit Information
Bureaus, like credit rating agencies, are critical for the operation of the financial
system and, in many ways, have a privileged relationship with the regulator. As
such, it is desirable that the objective should be to move towards a sufficiently
diversified ownership with no single entity owning more than 10 per cent of the
paid-up capital in the first stage, and 5 per cent later
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