Governor Shanktikanta Das of the RBI announced on Thursday that the bank intends to enhance the frequency of reporting credit information to credit information companies (CICs) to a fortnightly basis or at shorter intervals.
For lenders as well as borrowers, correct credit information must be readily available. Currently, lenders must disclose credit information to credit information companies (CICs) either monthly or at shorter intervals as the lenders and CICs may agree upon.
Credit Information Companies, or CICs, are independent third-party institutions that gather financial data regarding loans, credit cards, and more about individuals and share it with their members, such as banks and Non-Banking Financial Institutions (NBFCs).
Currently, there are four credit information companies registered with the RBI. These are Credit Information Bureau (India) Limited (CIBIL), Equifax Credit Information Services Private Limited, Experian Credit Information Company of India Private Limited, and CRIF High Mark.
What credit reports contain and why you should know it:
*An individual’s financial transactions as reported to the Credit Information Corporation (CIC) are summarized in a credit report. Under Republic Act 9510, the CIC is authorized to compile and compile these reports.
*Basic details like your name, TIN, SSS or GSIS numbers, residence, employment, and business are all included in your credit report. It will also contain all of your utility subscriptions, loan agreements with lending institutions, and other debts that the CIC is permitted to collect.
*Only with your express consent may someone view your credit record. Only you or the financial institution you are transacting with have access to this.
*The lender or service provider may ask you to sign a waiver of access during the loan or service application process. The lender or service provider will be able to evaluate your application fairly and impartially thanks to your credit report. Generally speaking, those with strong payment histories might be eligible for greater services or reduced interest rates compared to those with weak payment histories.
