New Student Offer Use Code - HELLO

Join Here

RBI released Norms for Entities that Harness Data from CICs

Published on January 11, 2022
Current Context: The Reserve Bank of India (RBI) has released norms for entities that harness data from credit information companies (CICs) or credit bureaus.
RBI released Norms for Entities that Harness Data from CICs
  • It includes eligibility criteria and other allied norms.
  • As per the norms, a company’s net worth must be at least Rs 2 crore and it must be owned and controlled by an Indian resident, then only he/she is applying to become a designated user with a credit bureau. This has come amid accusations of lending applications with Chinese ties functioning in India.
  • As per the eligibility criteria for entities to be highlighted as Specified User under clause (j) of Regulation 3 of the Credit Information Companies (Amendment) Regulations, 2021:
    • The company must be incorporated in India or a statutory corporation established in India.
    • The governing statute of the statutory corporation or memorandum of association of the company must allow business activity to process information for the support or benefit of credit institutions.
    • The ownership of the company should be well diversified.
    • The company should have at least three years of experience to execute the business or activity of processing information for the support or benefit of credit institutions and must have a proper track record in the same.
    • The promoters or directors of the company should not have any charge against being involved in any offence in the past as well.

Question: 

Q.1 As per RBI’s norms for entities that harness data from credit information companies (CICs) or credit bureaus, a company’s net worth must be at least Rs _____and it must be owned and controlled by Indian residents?
a. 50 lakhs
b. 70 lakhs
c. 1 crore
d. 2 crore
ebook store

About Me

Ramandeep Singh

Ramandeep Singh - Educator

I'm Ramandeep Singh, your guide to banking and insurance exams. With 14 years of experience and over 5000 successful selections, I understand the path to success firsthand, having transitioned from Dena Bank and SBI. I'm passionate about helping you achieve your banking and insurance dreams.

  • Follow me:
Close Menu
Close Menu