Source: ET
Context:
- The Reserve Bank of India (RBI) has proposed that Credit Institutions (CIs) and Credit Information Companies (CICs) update their records weekly instead of the existing fortnightly schedule.
- This move aims to improve the accuracy and timeliness of credit information for lending and risk assessment.
Key Directives
- Frequency of Updates
- Weekly submissions on: 7th, 14th, 21st, 28th, and the last day of each month.
- Previously, updates were made fortnightly.
- Type of Data for Weekly Submissions
- Incremental data only, including:
- Newly opened accounts
- Accounts with a change in classification of assets (e.g., standard, SMA, or NPA)
- Other updates impacting credit assessment
- Incremental data only, including:
- Full Credit Report Submission
- CIs must submit the complete credit information record within three days after the end of each month.
Rationale
- Enhanced Accuracy: Reflects the most recent credit activity, supporting better credit decisions.
- Timely Risk Assessment: Ensures CIs have up-to-date data for underwriting loans and monitoring risk.
- System Efficiency: Facilitates faster error rectification and data submission.
