What changed
RBI issued a Certificate of Registration to Experian Credit Information Company of India Private Ltd on February 17, 2010, authorizing it to commence credit information business. This adds a second credit information company alongside CIBIL for RRBs to report to.
What it means for you
RRBs now have an additional credit information company to share data with, which can improve credit assessment and reduce information asymmetry. Banks must ensure they are ready to exchange data with Experian promptly, as previously advised in the October 2009 circular.
What you must do
- Initiate steps to build and maintain a comprehensive credit database as per earlier RBI guidance.
- Prepare to report credit data to Experian Credit Information Company of India Pvt Ltd without delay.
- Acknowledge receipt of this circular to your respective Regional Office.
- Coordinate with Experian using the provided contact details for data submission procedures.
Who it affects
All Regional Rural Banks (RRBs), Credit information companies (CIBIL and Experian), Borrowers whose credit data will be shared
Why is RBI licensing a second credit information company?
To enhance the credit information ecosystem, giving lenders more data sources for better credit risk assessment and promoting competition in the credit information market.
What do RRBs need to do now?
RRBs must urgently build their credit databases and be ready to exchange data with Experian, just as they do with CIBIL, to comply with the Credit Information Companies (Regulation) Act, 2005.
When did Experian receive its license?
The Certificate of Registration was issued on February 17, 2010, as per the circular dated March 23, 2010.