Mumbai: RBI has expanded access to the credit information agency that allows Fintech companies to register as a user.
In November 2021, the RBI through Gazette’s notification has changed the 2006 credit information company regulation Recent notifications reversed the central bank stand in 2019 that consumer credit information cannot be shared directly with Fintech companies.
In communication with Bank and NBFC, RBI said that banks appointed Fintech companies as agents but this opposed the norms.
Under new regulations, any corporate entity with net worth more than Rs 2 Crore can process information to support regulated loan entities (banks and finance companies).
Also, companies must be owned by India with diverse ownership.
The main requirement is that the entity must have a certification of CAISA certified auditors (Cybersecurity and Infrastructure Security) which have a strong and safe information technology system in its place.
At present there are four Cibil Bureau Cibil, Equifax, Experian and Crif credit information.
According to lenders, Fintech which does not have non-banking financial permits (NBFC) but facilitates loans through partnerships with banks will benefit from this step.
It will also facilitate e-commerce players to offer ‘buy now’ options in partnership with lenders on their website.
RBI allows Fintech to access the credit bureau
