What changed
RBI issued a circular on July 23, 2013, reminding all RRBs of their statutory obligation under Section 15(1) of the Credit Information Companies (Regulation) Act, 2005 to become a member of at least one CIC. The circular notes that despite earlier instructions in 2009, a large number of RRBs remain non-compliant.
What it means for you
RRBs must urgently comply with the law by enrolling with a CIC and furnishing credit data in the required format. Non-compliance could invite regulatory action. This move strengthens credit information sharing, helping lenders assess borrower risk more accurately.
What you must do
- Immediately apply for membership with at least one Credit Information Company if not already a member.
- Ensure credit data is submitted in the format prescribed by the chosen CIC.
- Acknowledge receipt of this circular to your respective RBI Regional Office.
- Review compliance status across all branches to avoid any gaps.
Who it affects
All Regional Rural Banks (RRBs)
Why is RBI insisting RRBs join a CIC now?
RBI found that many RRBs still haven't complied with the 2005 Act's requirement to be a member of at least one CIC. This circular is a firm reminder to take immediate action.
What happens if an RRB does not comply?
The circular does not specify penalties, but as a statutory requirement, continued non-compliance may invite regulatory action from RBI.