In exercise of the powers
conferred by section 37 of the Credit Information Companies (Regulation) Act,
2005 (30 of 2005), the Reserve Bank of India hereby makes the following
regulations, namely:- CHAPTER I PRELIMINARY (1) These
regulations may be called the Credit Information Companies Regulations,
2006. (2) They
shall come Into force on the date of their publication in the Official Gazette. (1) In these
regulations, unless the context otherwise requires, (a) "Act"
means the Credit Information Companies (Regulation) Act, 2005, (30 of 2005); (b) "collector"
means a credit institution, or a credit information company, or a specified
user, as the case may be, which collects data, information, or credit
information in respect of a borrower, or a client; (c) "commodity
exchange" means an association or a company or any other body corporate
organising futures trading in commodities for which license has been granted by
the Forwards Markets Commission established under the Forward Contract
(Regulation) Act, 1952, (74 of 1952); (d) "data
management service" means the service of collecting, storing, devising
systems for retrieving, collating, analysing and distributing, publishing,
disseminating data, information, and providing of other inputs by a credit
information company to its members and specified users; (e) "Form"
means a form appended to the Schedule to these regulations; (f) "fees"
means such amount as is payable by a credit institution, or a credit
information company, as the case may be, to a credit information company,
towards membership fees or annual fees; (g) "Government
Securities" means a security created and issued by the Central Government
or a State Government for the purpose of raising a public loan in a form
specified in the Public Debt Act, 1944 (18 of 1944) and the government
securities as included in the definition of securities in the Securities
Contracts (Regulation) Act, 1956 (42 of 1956); (h) "Insurance
Regulatory and Development Authority" means the Insurance Regulatory and
Development Authority established under section 3 of the Insurance Regulatory
and Development Authority Act, 1999 (41 of 1999); (i) "Securities"
means securities as defined in clause (h) of section 2 of the Securities
Contracts (Regulation) Act 1956 (42 of 1956). (j) "Securities
and Exchange Board of India" means the Securities and Exchange Board of
India established under section 3 of the Securities Exchange Board of India Act
1992 (15 of 1992); (k) "Telecom
Regulatory Authority of India" means the Telecom Regulatory Authority of
India established under section 3 of Telecom Regulatory Authority of India Act,
1997 (24 of 1997); (l) "trading
member" means and include a member, a broker or a stock broker, who has
been admitted as such by National Stock Exchange or Bombay Stock Exchange and
who holds a registration certificate as a stock broker from the Securities and
Exchange Board of India; (2) Words and
expressions used in these regulations and not defined herein but defined in the
Act, or the rules shall have the same meanings respectively assigned to them in
the Act or the rules. SPECIFIED USERS (a)
an insurance company as defined in the
Insurance Act, 1938 (4 of 1938) and registered with the Insurance Regulatory
and Development Authority; (b)
a company providing cellular or phone
services and registered with the Telecom Regulatory Authority of India; (c)
a credit rating agency registered with the
Securities and Exchange Board of India; (d)
a stock broker as defined in the Securities
and Exchange Board of India (Stock Brokers and Sub-Brokers) Regulations 1992
and registered under section 12 of the Securities and Exchange Board of India
Act, 1992 (15 of 1992); (e)
a trading member, registered with a
recognized commodity exchange; (f)
the Securities Exchange Board of India; and (g)
the insurance Regulatory and Development
Authority. (h)
[2][an information utility as defined in the Insolvency and
Bankruptcy Code, 2016 (Act 31 of 2016) (i)
a resolution professional appointed under the
Insolvency and Bankruptcy Code, 2016 (Act 31 of 2016), in so far as the credit
information of the corporate debtor, in respect of which he has been so
appointed.] REGISTRATION OF COMPANIES AS
CREDIT INFORMATION COMPANIES Every, application by a company
for grant of certificate of registration under section 4 of the Act shall be
made in form A to the Chief General Manager-in-Charge of Department of Banking
Operations and Development of the Reserve Bank at Central Office Building,
Mumbai - 400 001, or to such other office and officer of the Reserve Bank as
may be specified by it in this behalf. (1) If, on
consideration of the particulars furnished by an applicant company, the Reserve
Bank is satisfied that the conditions as specified in sub-section (1) of
section 5 of the Act are generally fulfilled and the company is in a position
to fulfill the remaining conditions, it may - (a) grant
'in-principle approval' to such applicant company and provide time to the
company, not exceeding three months, for fulfilling the conditions included
therein; and (b) [3][the
Reserve Bank may grant further extension of such time, not exceeding three
months at a time, for the purpose of fulfilment of the conditions stipulated in
the 'in-principle approval' where it is satisfied with respect to the cause for
failure of the company to fulfil such conditions within the time so provided. Provided that the total time of
extension so granted shall not exceed a period of twelve months'.] (2) The
Reserve Bank may, after being satisfied that the conditions as per sub-section
(2) of section 5 of the Act and sub-regulation (1) are fulfilled, grant a
certificate of registration in form 'B' to the applicant company to commence or
carry on the business of credit information, as the case may be, and may also
impose such other conditions as it may consider fit. BUSINESS OF CREDIT INFORMATION
COMPANIES In addition to the business of
credit information, and subject to such conditions as specified in these
regulations, credit information companies may engage in any one or more of the
following forms of business, namely :- (a) providing
to any person his own credit information; (b) providing
data management services to its member credit institutions; (c) collecting,
processing, collating and disseminating data, relating to properties mortgaged
to credit institutions; (d) collecting,
processing, collating and disseminating data relating to investments made by
its member credit institutions in securities other than government securities; (e) collecting,
processing, collating data , relating to, frauds perpetrated in borrowal
accounts of credit institutions and money laundering, and dissemination thereof
to its members and specified users. COLLECTION, FURNISHING OF CREDIT
INFORMATION AND PURPOSES THEREOF (1) A notice
required to be issued by a credit information company or any person authorised
in that behalf by the company under sub-section (1) of section 17 of the Act
for collection of credit information .from its member credit institutions or
credit information companies, as the case may be, shall be sent in form C or as
near thereto. (2) Every
credit information company shall adopt a format with the approval of the
Reserve Bank, for collecting credit information and forward the format to its
member credit institutions or credit information company, as the case may be,
along with the notice in form C sent to them for collecting credit information, (3) On
receipt of such notice and format, the addressee credit institution or credit
information company, as the case may be, shall furnish credit information in
the format received along with the notice issued by the credit information
company. (1) In case a
credit institution or a credit information company, as the case may be, for any
justifiable reason, is not able to comply with the notice sent by a credit
information company as per sub-regulation (1) of regulation 7 within the time
stipulated therein, it may approach the concerned credit information company in
writing for extension of time to comply with the same. (2) If the
concerned credit information company is not satisfied with the reasons
submitted by the member credit institution or the member credit information
company, as the case may be, for their failure to comply with the notice sent
by a credit information company as per sub-regulation (1) of regulation 7, in
such case the credit information company shall refer the matter to the Reserve
Bank and the decision of the Reserve Bank shall be final in this regard. (1) Credit
information shall be provided by every credit information company to a
specified user as per sub-section (3) of section 17 of the Act, for the
following purposes, namely:- (a) to make
effective credit decisions; (b) to deter
concurrent borrowers and serial defaulters; (c) to keep
adverse selection of customers to the minimum; (d) to review
and evaluate risk of its customers; (e) to
effectively discharge their statutory and regulatory functions; (f) to
effectively discharge the functions as a credit rating agency; (g) generally
in relation to and for purposes of taking credit decision, or for judging
credit worthiness of a. borrower or a client, as the case may be; (h) 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; (i) 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 of extension, as the
case may be, of his existing credit facility granted by any specified user; (j) 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 of extension, as the case
may be, of his existing credit facility granted by the specified user; (k) to enable
a person to know his own credit Information. PRIVACY PRINCIPLES (a) Care in collection of credit information: i)
Every credit information company shall take all such necessary
precautions, in respect of information received or collected by it so as to
ensure that such information is (A) properly
and accurately recorded, collated and processed; and (B) protected
against loss, unauthorised access, use, modification or disclosure thereof. ii)
Every credit institution shall - (A) keep the
credit information maintained by it, updated regularly on a monthly basis or at
such shorter intervals as may be mutually agreed upon between the credit
institution and the credit information company; and (B) take all
such steps which may be necessary to ensure that the credit information
furnished by it, is update, accurate and complete. (b) ?Access
to, and modification of, the credit information: i)
Every credit information company shall - (A) establish
and adopt procedures relating to disclosure to a person, upon his request, his
own credit information and subject to his satisfactory identification; and (B) provide
reasonable time and opportunity to such person for establishing his identity
and the credit information company may call for his personal attendance, if so
necessary, and production of such other documents as may be necessary as proof
of his identity. ii)
Every specified user on receipt of a request as per subsection (3)
of section 21 of the Act, from a client or a borrower, as the case may be, for
updating of his credit information, shall intimate about such request to the
credit information company which had furnished such credit information to the
specified user. iii) Every
credit information company on receipt of the intimation from a specified user,
shall intimate about the request made by the borrower or the client, as the
case may be, the credit institution which had furnished such credit information
to the credit information company'. iv) Every
specified user, credit information company, and credit institution, shall take
prompt action in relation to updating of the credit information and to send the
intimation and their response with proper co-ordination amongst them so as to
ensure that the requisite action is taken in this behalf within the time limit
as provided under sub-section (3) of section 21 of the Act. (c) ?Data use
limitation: Obligation to disclose.- Every
specified user, in case of denying credit or any other service to a borrower or
a client, as the case may be, on the basis of his credit information report
within thirty days of its such decision shall - (A) send a
written intimation to .such borrower, or the client about the rejection ; (B) include
in such intimation the specific reasons for rejection; (C) forward a
copy of the credit information report relied upon for such decision; and (D) also
provide the name and address of the credit information company which had
provided the credit information report to the borrower or client, as the case
may be. (d) ?Length of
preservation of credit information: (a) every
credit information company and credit institution shall retain credit
information collected, maintained and disseminated by them for a minimum period
of seven years. (b) Every
credit information company and credit institution shall develop guidelines and
procedures to be adopted by them, with the approval of the Reserve Bank in
respect of preservation and destruction of credit information. (1) Every
credit institution, credit information company and specified user, as the case
may be, shall adopt the following principles and procedures in respect of; (a) the
manner and purpose of collection of personal data; (b) solicitation
of personal data from individual concerned; (c) their
extent of accountability; and (d) for
redressal of grievances of individuals in respect of personal data. (2) Manner
and purpose of collection of personal data. - No credit institution or credit
information company, or specified user, as the case may be shall collect, or
publish or disclose, personal data except for the purposes relating to their
functions: (a) as per
the provisions of the Act, or their activities incidental or relating to their
such functions; or (b) in
relation to their capacity and function as an employer of an individual who is
or has been in their employment. (3) Solicitation
of personal data from an individual. - In case of collection and use of
personal data as per this regulation, by a credit institution, credit
information company, or a specified user, as the case may be, they shall take
such steps as are, in the circumstances, reasonable to ensure that, before such
data is collected or, if that is not practicable, as soon as practicable after
such data is collected - (a) the
individual concerned is informed of the purpose for which such data is being
collected, or disclosed, or used, as the case may be; and (b) such data
maintained by them is protected against any loss, or unauthorized access, or
use, or modification or disclosure, thereof. (4) Length of
preservation of personal data. ? i)
Every credit information company and credit institution shall
retain personal data collected, maintained and disseminated by them for a
minimum period of seven years. ii)
Every credit information company and credit institution shall
develop guidelines and procedures to be adopted by them, with the approval of
the Reserve Bank in respect of preservation and destruction of personal data. Explanation:- For the purpose of
this regulation, "personal data" means such other data relating to an
individual other than what a credit institution, or a credit information
company, or a specified user, is permitted to collect as per the provisions of
the rules made under the Act. MAXIMUM AMOUNT OF FEES (1) Every
credit information company shall be entitled to charge such amount,, as it may
deem appropriate, not exceeding Rs.15,00,000/- towards fee, from credit
institutions or credit information companies for admitting them as their
member. (2) Every
credit information company shall be entitled to charge such amount, as it may
deem appropriate, not exceeding Rs. 15,00,000/- in case of member credit
information company and Rs. 50,000/- in case of member credit institution
towards the annual fee. (3) Every
specified user shall furnish a copy of the credit information to such person as
referred to in sub-section (1) of section 21 of the Act, subject to a charge of
amount not exceeding Rs. 50/-. (4) For
providing to an individual his own credit information, a credit information
company may charge such amount as it deems appropriate not exceeding Rs. 100/-. (5) Every
credit information company shall be entitled to charge from a specified user,
such amount, as it may deem appropriate, not exceeding Rs. 500/- for providing
credit information report of an individual, and Rs. 5000/- for others [1] Substituted
by the Credit Information Companies (Amendment) Regulations, 2017 vide
Notification No. BBR.CID.No.786/20.16.050/2017-2018 dated 11.08.2017 for the
following:- "following companies" [2] Inserted
by the Credit Information Companies (Amendment) Regulations, 2017 vide
Notification No. BBR.CID.No.786/20.16.050/2017-2018 dated 11.08.2017. [3] Substituted vide Circular
No. DBOD.DL.BC 49/20.16.040/2009-10 dated 23.10.2009 for the following :
- "(b) in any particular case
the Reserve Bank may grant further extension of such time not exceeding three
months for the purpose of fulfillment of the conditions stipulated in the
'in-principle approval', where it is satisfied with respect to the cause for
failure of the company to fulfill such conditions within the time so
provided."The Credit Information Companies
Regulations, 2006