The Reserve Bank of India (RBI) is considering a proposal to increase the frequency of credit information reporting to Credit Information Companies (CICs) to every two weeks or even shorter intervals, RBI Governor Shaktikanta Das announced on Thursday.
Accurate credit information is crucial for both lenders and borrowers. Currently, lenders are required to report credit data to CICs on a monthly basis or at agreed-upon shorter intervals. The proposed change aims to enhance the timeliness and accuracy of credit information available to financial institutions.
Also Read: RBI Plans Major Overhaul To Speed Up Cheque Clearing Process
Credit Information Companies (CICs) are independent entities responsible for collecting and sharing financial data related to loans, credit cards, and other credit facilities. This information by banks and Non-Banking Financial Companies (NBFCs) to evaluate creditworthiness.
The RBI currently recognizes four CICs: Credit Information Bureau (India) Limited (CIBIL), Equifax Credit Information Services Private Limited, Experian Credit Information Company of India Private Limited, and CRIF High Mark.
Content: A credit report includes personal details such as name, identification numbers, residence, employer, and business information. It also covers loan agreements, utility subscriptions, and other financial obligations collected by the CIC.
Access: Access to your credit report is restrict to authorize entities. Only you or the financial institutions you are dealing with can view your report, provided you give explicit consent.
Loan Applications: When applying for loans or other services, you may be asked to sign a waiver allowing the lender or service provider to access your credit report. This information helps assess your application more accurately. Generally, individuals with strong payment histories may benefit from lower interest rates or better service terms.
The RBI’s proposed change aims to make the credit reporting process more dynamic and responsive, potentially improving the overall efficiency of credit assessments in the financial sector.
The student group 'Shaher-E-Arzoo' expressed firm support for the Waqf Amendment Bill, calling it a…
The 27% tariff hike by US President Donald Trump on Indian goods will have only…
Following the passage of the Waqf Amendment Bill 2024 in both Houses of Parliament, celebrations…
India’s forex reserves jumped $6.6 billion to a five-month high of $665.4 billion for the…
Gautam Buddha Nagar Police, led by CP Laxmi Singh, achieved a historic feat with all…
Prime Minister Narendra Modi called on Bangladesh to bring perpetrators of atrocities against Hindus and…