Non deposit taking NBFCs exempted from data furnishing to CICs

The Reserve Bank has exempted NBFCs registered as core investment companies and those not having any customer interface from providing data on borrowers to credit information companies (CICs).

Mumbai: The Reserve Bank has exempted NBFCs registered as core investment companies and those not having any customer interface from providing data on borrowers to credit information companies (CICs).

"It has been decided that NBFCs which are registered with the Bank as core investment companies, primary dealers and those purely into investment activities without any customer interface are exempt from the applicability," RBI said in a circular.

As per RBI guidelines in 2010, Non-Banking Finance Companies (NBFCs) were required to provide current and historical data on borrowers to the credit information companies.

RBI said the decision follows a representations on the applicability of said instructions to NBFCs that do not have any customer interface.

The credit information companies collect and maintain records of individual payments with regard to loans and credit cards. Such records are furnished by banks and credit firms.

The information is provided to credit institutions to help them evaluate and approve loan applications or any other credit applications.

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