Return
to Story Page
To print: Select File and then Print from your
browser's menu
Paramvir Singh
Mumbai, June 8: The Reserve Bank of India (RBI) has decided to maintain a systematic database on loans extended by banks to corporate clients. The information will be made available through a `Credit Information Bureau' to be set up by the RBI. However, the apex bank has yet to decide on the pricing of this information and who the information could be shared with.
A press release issued on Tuesday by the bank in Mumbai said that it has already constituted a committee with representatives from RBI, banking industry and the Indian Banks' Association (IBA).
"The Credit Information Bureau is not expected to have any representation from the non-banking finance companies (NBFCs) to start with," the release said, adding that the committee will study issues such as the format in which the relevant information has to be collected and identifying potential sources of information which are reliable and consistent.
However, the committee is yet to decide on how should the CIB be structured and who should be allowedto participate in it. "The role of private sector participation will also be examined by the committee. However, private sector participation in the Credit Information Bureau would require legislative ammendments," banking sources said.
The RBI has already issued instructions to banks to report wilful defaults involving loans above Rs 25 lakhs from April 1, 1999 onwards on a quarterly basis--in keeping with the Central Vigilance Commissioner directives.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
------------------------------------------------------------
This story was printed from Net Express located at http://www.expressindia.com. Net Express provides a portal to India, with news from The Indian Express and The Financial Express along with sites on travel and tourism, the entertainment industry, the power sector, the environment and much more.
------------------------------------------------------------