Credit Information Companies (CIC) in India

A CIC or any person so authorized may by a notice, requisition credit information from its members being Credit Institutions and other CICs. A CIC shall also adopt a format with RBI approval, for collecting the requisitioned credit information and shall forward the agreed upon and approved format to its members being Credit Information and CICs. Upon receiving the notice and the format, the member Credit Institutions and CICs must furnish the requisitioned information within the time specified in the notice.

Permissible users of the credit information

Credit information provided by every CIC to specified user can be used only for the following purposes

To make effective credit decisions ï‚· To deter concurrent borrowers and serial defaulters

To keep adverse selection of customers to the minimum ï‚· To review and evaluate risk of its customers

To effectively discharge their statutory and regulatory functions ï‚· To effectively discharge the functions as a credit rating agency ï‚· Generally in relation to and for purposes of taking credit decisions, or for judging credit worthiness if a borrower in a client, as the case may be

To take a credit decision on a person who accepts liability for payment on a bill of exchange drawn by another person who has applied to the specified user for availing new credit facility or for review or renewal or enhancement or of extension, as the case may be , of his existing credit facility granted by the specified user,

To take credit decision in relation to a person who draws a promissory note in favour of another person, or who has applied to a specified user for availing new credit facility or for review or renewal or enhancement or extension, as the case may be, of his existing credit facility granted by any specified user

To take credit decision in relation to a person who proposes to act as a guarantor for another person who has applied to a specified user for availing new credit facility or for review or renewal or enhancement or extension, as the case may be, of his existing credit facility granted by any specified user

To enable a person to know his own credit information