What changed
RBI has updated the Uniform Credit Reporting Format for Credit Information Companies (CICs). The field 'Written off and Settled status' in the Consumer Bureau is now 'Credit Facility Status' with a new catalogue value 'Restructured due to COVID-19'. Similarly, the Commercial Bureau's 'Major reasons for restructuring' and the MFI Bureau's 'Account status' now include 'Restructured due to COVID-19'.
What it means for you
Banks and lenders must now tag COVID-19 restructured loans separately in credit reports to CICs. This ensures accurate tracking of pandemic-related relief measures and helps CICs reflect the true status of borrower accounts. Lenders need to update their reporting systems within two months to comply.
What you must do
- Update your credit reporting systems to include the new catalogue value 'Restructured due to COVID-19' in Consumer, Commercial, and MFI bureau formats.
- Ensure all COVID-19 restructured loans are correctly tagged and reported to Credit Information Companies within two months from March 12, 2021.
- Coordinate with your IT and compliance teams to align with the modified Uniform Credit Reporting Format as per RBI circular DOR.No.BP.BC.3/21.04.048/2020-21.
- Verify that CICs have updated their systems to reflect these changes and test data submissions.
Who it affects
All Commercial Banks including Small Finance Banks, Local Area Banks, and Regional Rural Banks, All Primary (Urban) Co-operative Banks, State Co-operative Banks, and District Central Co-operative Banks, All-India Financial Institutions (Exim Bank, NABARD, NHB, SIDBI), All Non-Banking Financial Companies including Housing Finance Companies, All Credit Information Companies
What is the new catalogue value added to the credit reporting formats?
The new catalogue value is 'Restructured due to COVID-19', added to the Consumer Bureau's 'Credit Facility Status' field, the Commercial Bureau's 'Major reasons for restructuring' field, and the MFI Bureau's 'Account status' field.
By when must banks implement these changes?
Banks, AIFIs, and NBFCs must make necessary system modifications and commence reporting the updated information to Credit Information Companies within two months from the date of the circular, i.e., by May 12, 2021.
Which previous RBI circular does this modification support?
This modification supports the Resolution Framework for COVID-19 related stress as outlined in circular DOR.No.BP.BC.3/21.04.048/2020-21 dated August 6, 2020.