RBI asks ARCs to become members of all 4 credit information companies

The Reserve Bank on Thursday asked Asset Reconstruction Companies (ARCs) to become members of all credit information companies and submit the requisite data to them in the prescribed format.

As per the extant norms, ARCs had to be members of at least one Credit Information Companies (CICs).

Currently, there are four CICs in India: TransUnion CIBIL, Experian, Equifax and CRIF High Mark.

In a circular, the central bank said it has decided to align the norms for ARCs with the guidelines applicable to banks and NBFCs with a view to maintaining track of borrowers’ credit history after the transfer of loans by banks and NBFCs to ARCs.

"ARCs shall become members of all CICs and submit the requisite data to CICs as per the Uniform Credit Reporting Format prescribed by the Reserve Bank," it said in a circular.

ARCs have been asked to put in place a system and processes to ensure compliance with the revised guidelines latest by January 1, 2025.

In another circular, the Reserve Bank said all credit institutions (CIs) will continue to report credit information of the borrowers on-boarded and reported to CICs prior to cancellation of their licence or certificate of registration to all the four CICs till the loan life cycle is completed or the credit institution is wound up.