The Reserve Bank of India (RBI) on October 10, 2024, notified the Submission of information to Credit Information Companies (CICs) by ARCs.
The revised guidelines for Asset Reconstruction Companies (ARCs) aim to align them with banks and NBFCs regarding borrower credit tracking. Key points include:
Mandatory CIC Membership: ARCs must become members of all Credit Information Companies (CICs) and submit data following RBI's Uniform Credit Reporting Format.
Data Submission: ARCs must update borrower information with CICs on a fortnightly basis or at shorter intervals as agreed.
Data Rectification: Rejected data must be corrected and resubmitted to CICs within seven days.
Best Practices: ARCs should adopt best practices including regular data updates, customer information provision, appointment of a nodal officer, and integration of grievance redressal related to credit information.
Compliance Deadline: ARCs must implement systems and processes to comply with these guidelines by January 1, 2025.
[Notification No. RBI/2024-25/82]
