RBI released Norms for Entities that Harness Data from CICs

Current Context: The Reserve Bank of India (RBI) has released norms for entities that harness data from credit information companies (CICs) or credit bureaus.

• 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