RBI/2004-05/272
DBOD No.DL.BC.56/20.16.002/2004-05
November 6, 2004
All Scheduled Commercial Banks (excluding RRBs)
and Notified All-India Financial Institutions and
State Financial Corporations
Dear Sir,
Mid-term Review of Annual Policy Statement for the year 2004-05
-Dissemination of credit information by CIBIL
Reserve Bank had issued instructions to banks
and financial institutions (FIs) vide circulars DBOD No.DL.BC.29 and 70/20.16.002/2002-03
dated October 1, 2002 and February 10, 2003, respectively, to obtain the consent
of all their borrowers (and not only defaulters) to facilitate submission of
details of all borrowal accounts to CIBIL for compilation of credit information
data base (performing and non-performing) accessible to member banks to significantly
improve the quality of credit appraisal and decisions. With a view to giving
further impetus to data reporting to CIBIL, banks/FIs were advised that their
Boards should review the measures for furnishing credit information in respect
of borrowers to CIBIL and for reporting compliance to Reserve Bank of India
vide our circular DBOD
No.DL.BC.95/20.16.002/2003-04 dated June 17, 2004.
2. Despite the above instructions, the progress
of banks/FIs in obtaining consent from all the borrowers is still unsatisfactory
and is hampering the establishment of an efficient credit information system
to enhance the quality of credit decisions, improve the asset quality of banks/FIs
and facilitate faster credit delivery.
3. In this connection, a reference is invited
to paragraph 127 of the Mid-term Review of Annual Policy Statement
for the year 2004-05 enclosed to the Governor's letter No.MPD.BC.256/07.01.279/2004-05
dated October 26, 2004 (copy of the paragraph enclosed). As stipulated therein,
banks/FIs are once again advised to take immediate steps in this regard and
ensure submission of periodical data to CIBIL and progress reports to RBI. If
the compliance in this regard remains unsatisfactory, RBI would be constrained
to examine other penal measures on the concerned banks.
Yours faithfully,
(C R. Muralidharan)
Chief General Manager-in-Charge
Mid-term Review of Annual Policy Statement
for the year 2004-05
Para 127 -Dissemination of Credit Information by CIBIL
Banks are urged to make persistent efforts in obtaining consent from all
their borrowers, in order to establish an efficient credit information system,
which would help in enhancing the quality of credit decisions and improving
the asset quality of banks, apart from facilitating faster credit delivery.