What changed
RBI has advised co-operative banks to include the Director Identification Number (DIN) as a field in the data format sent to credit information companies. This follows observations that similar names of directors of different firms often lead to incorrect denial of credit. The change aims to improve accuracy and completeness of credit information.
What it means for you
Banks must update their data submission templates to include DIN for all directors of borrowing entities. This will reduce false matches and ensure that only genuinely defaulting directors are flagged. It also aligns with the broader push for unique identification in credit reporting.
What you must do
- Update your data submission format to include the DIN field for all directors of firms/companies.
- Train your credit and data teams on the new requirement to ensure compliance.
- Verify that your IT systems can capture and transmit DIN accurately to credit information companies.
- Acknowledge receipt of this circular to your respective Regional Office.
Who it affects
State Co-operative Banks, Central Co-operative Banks
Why is DIN being added to credit data submissions?
To prevent wrongful denial of credit due to similar names of directors across different firms. DIN ensures unique identification of each director.
Which banks are required to comply with this directive?
All State Co-operative Banks and Central Co-operative Banks must include DIN in data submitted to credit information companies.
What should we do if our system doesn't currently capture DIN?
You need to update your data collection and reporting systems to capture DIN from borrowers and include it in submissions to credit information companies.