RBI Drops Borrower Consent for Credit Info Sharing with CICs
Current · Source: Reserve Bank of India · RBI/2013-14/112 · issued 01 Jul 2013 · ~1 min read
Quick answerRBI has withdrawn the requirement for banks to obtain borrower consent before reporting credit data to Credit Information Companies, as the CIC Act, 2005 now provides statutory backing for such sharing.
The rule, in the simplest words
Banks no longer need to ask a borrower for permission before sharing their loan history with Credit Information Companies (CICs, which are companies that keep track of people's loan records).
This change happened because the Credit Information Companies (Regulation) Act, 2005 (a law that started on December 14, 2006) now allows banks to share this information without separate consent.
Banks must remove the old 'consent clause' (a special permission line) from all new loan papers and update their internal rules to follow the new law.
Banks still have to follow the conditions set by the CIC Act when sharing data, like making sure the information is correct and used only for allowed purposes.
How it plays out — a real example
Priya, a credit & lending officer in Indore, used to spend extra time explaining the consent clause to every customer before sending their loan data to the credit bureau. Now, thanks to the RBI's update, she simply submits the repayment history without asking for permission, saving 10 minutes per application and ensuring every borrower's record is complete for better risk checks.
What changed
Earlier, banks had to include a consent clause in loan documents to report credit information to CICs. With the CIC Act, 2005 coming into force from December 14, 2006, this consent is no longer legally required. RBI has now explicitly advised banks to stop insisting on the consent clause prescribed in earlier circulars.
What it means for you
Banks can now share credit data with CICs without needing explicit borrower consent, streamlining reporting processes. This reduces documentation burden and ensures more comprehensive credit histories, aiding better risk assessment. However, banks must still comply with the CIC Act's conditions for data sharing.
What you must do
Remove the consent clause from all new loan/credit documents immediately.
Update internal policies and reporting procedures to align with the CIC Act, 2005.
Train staff on the revised process for submitting credit information to CICs.
Review existing loan agreements to ensure no outdated consent clauses remain in use.
Who it affects
All Scheduled Commercial Banks (excluding RRBs), All India Financial Institutions, Credit Information Companies (CICs), Borrowers (no longer need to provide separate consent)
❓ Common questions
Does this circular apply to Regional Rural Banks (RRBs)?
No, the circular explicitly excludes RRBs from its scope.
What happens to existing loan documents that already have a consent clause?
The circular advises that banks need not insist on the consent clause going forward, but existing documents are not invalidated. Banks should focus on new agreements.
Is there any condition under the CIC Act for sharing credit information?
Yes, the CIC Act provides statutory backing for sharing credit information subject to conditions stipulated in the Act and its rules. Banks must comply with those conditions.
📜 Read the original circular — full text as issued by RBI
RBI/2013-14/112
DBOD No. CID. BC. 27/20.16.042/2013-14
July 1, 2013
The Chairmen / Managing Directors / CEOs
All Scheduled Commercial Banks (excluding RRBs) &
All India Financial Institutions
Dear Sir/Madam,
Submission of Credit Information to Credit Information Companies -
Withdrawal of ‘consent clause’
Please refer to our circulars (i) DBOD.No.BC.DL.4/20.16.002/99-2000 dated October 21, 1999 (ii) DBOD.No.DL.BC.29 /20.16.002/2002-03 dated October 1, 2002 and other circulars/instructions relating to reporting of credit information and introduction of consent clause in the loan/credit documents.
2. As you are aware, Credit Information Companies (Regulation) Act, 2005 (CIC Act) and the Rules and Regulations framed there under have come into force with effect from December 14, 2006. Section 17 of the Credit Information Companies (Regulation) Act, 2005 provides for collection (from members) and furnishing (to specified users) of credit information by credit information companies. The CIC Act provides statutory backing for sharing of credit information by Credit Institutions with credit information companies subject to conditions stipulated therein. Therefore, with CIC Act coming into force, the “consent clause” has become redundant and hence it is advised that consent of the borrower prescribed vide Annexure I and II of our circular DBOD.No. DL.BC.29/20.16.002/2002-03 dated October 1, 2002 need not be insisted upon by banks.
Yours faithfully,
(Rajesh Verma)
Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2013-14/112 · issued 01 Jul 2013. The plain-English explanation above is BankPulse’s own independent summary.
Example: if you are a Compliance officer at a bank this circular applies to (All Scheduled Commercial Banks (excluding RRBs), All India Financial Institutions, Credit Information Companies (CICs), Borrowers (no longer need to provide separate consent)), your first concrete step on “RBI Drops Borrower Consent for Credit Info Sharing with CICs” is: “Remove the consent clause from all new loan/credit documents immediately.” (RBI issued this 01 Jul 2013).
Circular: RBI/2013-14/112 -- RBI Drops Borrower Consent for Credit Info Sharing with CICs
Issued: 01 Jul 2013
Action required: Remove the consent clause from all new loan/credit documents immediately.
Action required: Update internal policies and reporting procedures to align with the CIC Act, 2005.
Action required: Train staff on the revised process for submitting credit information to CICs.
Action required: Review existing loan agreements to ensure no outdated consent clauses remain in use.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.
💬 Banker Discussion
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=8202&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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