What changed
Previously, reporting of Relationship Segment (RS) details in the Commercial Bureau format was not mandatory, leading to low data levels. Now, RBI has mandated that all Credit Institutions must report RS data to Credit Information Companies, with a phased timeline for legacy accounts.
What it means for you
Banks and lenders must now capture and report relationship fields like directors, shareholders, and group companies for commercial borrowers. This will enhance credit risk assessment by revealing cross-linkages across different borrower modules, potentially impacting loan underwriting and monitoring.
What you must do
- Ensure systems capture RS data for all new loan accounts opened after July 1, 2022, and report it to CICs.
- Update RS data for accounts opened between July 1, 2021 and June 30, 2022 by January 1, 2023.
- Update RS data for accounts opened between July 1, 2018 and June 30, 2021 by July 1, 2023.
- Prepare for future timelines for remaining legacy data as advised by the Technical Working Group.
Who it affects
All Commercial Banks including Small Finance Banks, Local Area Banks, RRBs, All Primary (Urban) Co-operative Banks/State Co-operative Banks/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 Relationship Segment (RS) data?
RS data includes information on business category and type of relationship for corporates, such as details of directors, shareholders, proprietors, partners, trustees, holding companies, subsidiary companies, and associated companies related to the borrower.
When does the mandatory reporting start for new accounts?
Mandatory reporting of RS data is required for all new loan accounts opened after July 1, 2022.
What are the deadlines for updating legacy account data?
Accounts opened between July 1, 2021 and June 30, 2022 must be updated by January 1, 2023. Accounts opened between July 1, 2018 and June 30, 2021 must be updated by July 1, 2023. Timelines for older legacy data will be announced later.