The Reserve Bank of India (RBI) has set up a 12-member working group to explore the possibilities of setting up a credit information bureau (CIB) in India.
CIB is being contemplated for the collection of credit information relating to borrowers from lending institutions and for provision of such information to the financial system with a view to facilitating distribution of credit to all sectors of the economy and for related or incidental matters.
The group, headed by RBIchief general manager (department of banking operations & development) N H Siddiqui, will examine in detail the modalities for setting up of the bureau, as well as powers and functions to be assigned to it.
It will also look into all matters including the legal aspects relating to administration and management of the affairs of the bureau and recommend a suitable ownership and organisational pattern for CIB.
The type and range of trade, credit and financial information on borrowers or prospective borrowers of lending institutions to be collected from the customers of banks and other financial institutions generally and specifically, as also other economic/ environmental data that would be useful for the purpose, too would be finalised by the group.
The group, asked to submit its report by August 31, 1999, will also identify the members eligible for availing of the credit information and to decide on the cost of dissemination of the data.
The methodology for maintenance of data bank on borrowers from lending institutions and its dissemination including supportive technology requirements therefore would also be listed by the group.
It will examine issues relating to furnishing of credit information by CIB, on request, to financial institutions and to prescribe the forms in which such information is to be furnished.
Any other matter relevant to the setting up of a CIB would be considered by the group.
