Before going to that, a look at what a credit bureau, which is a norm in the West, is all about. A typical credit bureau in the US offers demographic information that helps a bank or credit card issuer verify consumer identification.

The bureau provides the consumer's name, plus any known aliases, current address, up to two previous addresses, social security number, date of birth, telephone number, position, income, date of employment, most current employer, one previous employer and the addresses of theemployers. The bureau highlights suspected fraud, if any, as indicated by any of the alert agencies.

The public record information is maintained on a consumer's file in compliance with the Fair Credit Reporting Act (FCRA), according to a US-based credit bureau. This information is obtained from county, state and Federal courts and provides notification of civil judgements or tax liens reported for the consumer over the past seven years.

Public record information includes the source, type of public record, date the public record was reported to the credit bureau, any liabilities, assets etc. The bureau significantly identifies consumer accounts that have been transferred to a professional debt-collecting firm. Collection information includes the name of the collection agency providing information and the consumer's account number with the collection agency. It also provides an on-going historical and current record of the consumer's buying and payment activities.

The possibility of such an organisedrecord on consumers is still remote in India. Nevertheless, a step has been taken in that direction, now that banks have decided to share customer information. Vijay S Mehta, chief consultant, Credit Card and Management Consultancy, says: ``As far as I am aware, the sharing of information would currently be for credit cards (negative/delinquent list), which could later encompass the entire gamut of retail finance activities.''

Now the sensitive point: Isn't customer information a confidential matter? How can banks share it with each other? Replies Mehta: ``Banks mention this fact (sharing of information aspect) in the credit card application in the form of a declaration, which is read and signed by the cardholder whilst applying for a credit card.'' This means that the cardholder is aware of and has given his consent to share/exchange/vet/verify information on his account with other banks/ card companies, he adds.

According to Mehta, certain card issuers have intimated to their cardholders the importanceand plan to share card accounts behaviour/information (which are not clean/ defaulters /delinquent) with other card issuers, via mailers and personal interface.

But isn't it disturbing for the customers? Says Mehta: ``This dissemination of information is a welcome move for both banks and card customers, as it helps in ameliorating the growth of a healthy card culture in India, and brings to a cardholder the importance of being responsible in repayment of card dues on time.'' Customers shouldn't take it in a bad spirit, he says, for in the long run, bad card accounts do not help either the cardholder's or bank's cause, says Mehta. ``Thus, imparting such information should be viewed as a constructive move,'' he suggests.

Although it's being seen as a constructive measure in the industry, isn't a credit bureau, like is prevalent in the West, a better idea? Mehta agrees. He says: ``I'm of the opinion that under the aegis of the Indian Banks Association (IBA), a `Shared Bank Credit Bureau' should be formedsoon.'' He explains: ``With the consumer credit culture spreading to all parts of the country, the consumer banking and cards industry will be the biggest beneficiaries of a Shared Bank Credit Bureau, as it will help them check the risk profile of borrowers before issuing a credit card or doling out a consumer loan.''

A Shared Bank Credit Bureau will also facilitate faster card issuance and help to minimise risks in the consumer lending business, says Mehta. Also, banks will be able to exchange information on defaulters, customers and fraudsters more cohesively through such a bureau, he says. But till such a bureau is set up, one bank will know what another bank's customer is up to. And that information will be passed on to a third and a fourth bank, if need be!