A RBI panel headed by Aditya Puri submitted its report on 22 March 2014. The Report is titled Data Format for Furnishing of Credit Information to Credit Information Companies (CICs).
The committee has made wide ranging recommendations on issues relating to credit information, such as, increasing its coverage, format of reports and best practices to be followed by credit institutions, credit information companies (CICs) and the Reserve Bank.
Highlights of the Report
• The Committee has suggested to provide customers with a free copy of their Credit Information Report (CIRs). It would help create awareness about the need to have credit discipline and help detect identity theft at an early stage.
• The committee also recommended a common Data Quality Index that could assist credit institutions in determining the gaps in their data and also help move towards improving their performance over a period of time.
It was also recommended to use a common data format that includes additional information in the formats, such as, dispute codes, consumer comments on dispute, details of collateral and a continuing mechanism for making changes to data formats that could help improve data quality.
• The committee has showed its concern that low usage of credit information by member institutions and other specified users needs to be addressed. It can be addressed by increasing the coverage of credit information in terms of membership (all credit institutions should be members of all CICs) and products and by creating awareness about Credit Information Reports (CIRs).
• CICs should have a common classification of Credit Scores so that it would be easier to understand and interpret them.
• CICs may provide a single CIR for a borrower even if there are multiple addresses, using a unique identification number (PAN/Aadhaar No.).
• CICs may have link with the database of Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI) which has data on mortgages so that CIRs can also provide information on property mortgages.