According to lenders, fin-techs that do not need non-banking monetary firm licence (NBFC) however facilitates credit by partnership with banks will profit from this transfer
The Reserve Bank of India (RBI), enabling fin-techs to register as customers, has widened the access to credit data bureaus.
The Credit Information Companies Regulation 2006 was amended by a gazette notification by the RBI in November 2021. The notification enabled “entities engaged in the processing of information, for the support or benefit of credit institutions and satisfying the criteria laid down by the RBI” to access particular person credit histories.
The current notification reverses the central financial institution’s stand in 2019 that client credit data can’t be immediately shared with fin-techs. The RBI, in a communication to banks and NBFCs, had stated that banks had been appointing fin-techs as brokers however this was in opposition to the norms.
Under the brand new rules, any company entity with a web price of over Rs. 2 crore can course of data to help regulated lending entities (banks and finance corporations). Also, the corporate has to be Indian-owned with diversified possession. A key requirement is that the entity ought to have a certification from CISA (Cyber-security and Infrastructure Security Agency) licensed auditor that it has a sturdy and safe data know-how system in place.
At the moment, there are 4 credit data bureaus TransUnion Cibil, Equifax, Experian and CRIF Mark. According to lenders, fin-techs that do not need non-banking monetary firm licence (NBFC) however facilitates credit by partnership with banks will profit from this transfer. This would additionally facilitate e-commerce gamers to supply ‘buy now pay later’ possibility in partnership with lenders on their web site.
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