RBI lays down eligibility norms for entities tapping credit bureau data

The rules say a company must be owned and controlled by resident Indian citizens to become a specified user with a credit bureau, amid reports of lending apps with Chinese links operating in India.

RBI
“The disclosure of the information being sought may harm the competitive position of the applicants.

The Reserve Bank of India (RBI) on Wednesday laid down eligibility norms for entities tapping into data from credit information companies (CICs), or credit bureaus. The rules say a company must be owned and controlled by resident Indian citizens to become a specified user with a credit bureau, amid reports of lending apps with Chinese links operating in India.

In order to be eligible as a ‘specified user’ under the Credit Information Companies (Amendment) Regulations, 2021, an entity must be a company incorporated in India or a statutory corporation established in India. The governing statute of the statutory corporation or memorandum of association of the company should allow the business or activity of processing of information for the support or benefit of credit institutions, the norms said.
In the case of a company, it should have a net worth of not less than Rs 2 crore as per the latest audited balance sheet, and shall meet the requirement on a continuing basis. The ownership of the company shall be well diversified.

The company shall have at least three years of experience in running the business or activity of processing information for the support or benefit of credit institutions and shall have a clean track record. The company, its promoters or directors should not have at any time in the past been convicted of any offence involving moral turpitude or any economic offence.

In addition, the entity should have a certification from a CISA-certified auditor that it has a robust and secure information technology (IT) system in place for preserving and protecting the data relating to the credit information as per the provision of the Credit Information Companies (Regulation) Act, 2005 and other applicable regulations or guidelines.

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