India’s apex bank has laid down rules for financial services providers registering as users with credit information companies (CICs), or credit bureaus.
The Reserve Bank of India (RBI) said that the entities wanting to access credit information should be incorporated in India.
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To qualify as a ‘specified user’ under the Credit Information Companies (Amendment) Regulations, 2021, the company should be owned and controlled by resident Indian citizens, or Indian entity owned and controlled by resident citizens, it added.
The norm mandates that the governing statute of the statutory corporation or memorandum of association should allow the business/activity of processing of information for the support or benefit of credit institutions.
It also requires the entities to have a net worth of INR20m, at least three years of experience in running the business and well-diversified ownership along with a clean track record.
Additionally, it should have certification from a CISA certified auditor to ensure it has capable IT systems in place to protect customer data.
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By GlobalDataIn a separate development recently, the RBI has given a Scheduled Bank status to Airtel Payments Bank, media reports said.
“In a boost to its fast-growing digital banking footprint, Airtel Payments Bank has been categorised as Scheduled Bank by the Reserve Bank of India,” it stated.
Last month, Paytm Payments Bank secured Scheduled Bank status from the RBI.
