Impact Analysis of Recommendations of RBI committee
for data Formats for CICshttp://rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=30855
Recommendations of RBI committee for data Formats for CICs
Recommendation Potential Impact/opportunity
All commercial banks, Regional Rural banks, Local Area Banks,HFCs and SFCs may be compulsorily required to becomemembers of all CICs and submit data to them.
Cooperative banks and NBFC with assets over ₹ 100 croresmay be compulsorily required to become members of all CICs.Others may be encouraged to become members of all CICs
• Huge increase in data load for CICs.• Help banks to generate and share data with
all CICs in standardised TUDF format• Adaptor for banks for generating and
sharing data with all CICs in standardised TUDF format
Include following fields relating to the CPs in the commercialdata format for collecting credit info from CIs:
1. Name of CP issuer2. Name of IPA3. Amount 4. Issue date5. Maturity date6. Name of credit rating agency7. Rating assigned8. Amount of default
TBD in the TWG (technical working group) for data formats
CICs may populate their DBs with commercial data records within 1 year
Opportunity to help CICs populate DBs with commercial data
Recommendation Potential Impact/opportunity
CIR should report co-borrower and guarantor details Enhance CIR format to include these details
CIC may be required to have information on mortgages of properties in the consumer bureau format by having linkages with the database of the Central Registry (CERSAI)
Enhance CIR format and the system that generates CIR (MSOTool)?
In case of multiple borrowings of the same customer, information on various accounts may be provided in the order of live accounts, closed accounts and overall position of NPA status/wilful default/suit filed, with limits and liabilities of each account
Enhance CIR format and the system that generates CIR (MSOTool)?
CIC should provide ‘Read-only’ access to members to view the data provided and updated by them
New system requirement unless already there
Necessary steps be taken to put in place a full-fledged online data correction mechanism
New system requirement
Adequate disincentives be put in place to ensure that CICs and CIs adhere to the timelines stipulated under the CIC rules for resolving discrepancies in CIR
?
CIRs should provide appropriate disclosures if any information contained therein is disputed and the matter is not satisfactorily resolved. if the customer so desires, his/her comment could also be added to the CIR
Enhance CIR format and the system that generates CIR?
Recommendations related to CIR
Recommendation Potential Impact/opportunity
New fields to indicate willful default of over ₹ 25 lakh (suit filed andnon-suit filed accounts)
Improve the commercial data format
DPDs should be captured by CIs for reporting to CICs Enhancements to the CBS/credit systems of Cis
Fields showing reasons for restructuring Improve the commercial data format
Banks to share data on unhedged foreign currency exposure with CICs.
CICs may devise suitable format / fields for incorporation in the Commercial Data Format.
Data from CIs should have at least one of the identifier fields viz. PAN card No, Driving license no, Voter Card ID no. etc.
CIs to improve data generating process
Reasons fore rejection need to be parameterized and circulated among the credit institution concerned. Rejection reports should be made simple and understandable.
Enhancements to data upload process of CICs (DUA)
Data Quality Index New application requirement at CIC or Cis
CIBIL method of calibrating credit score from 300 to 900 could be adopted by the other CICs
Other CICs to Modify/create calibration to match scoring from 300 to 900
Changes in Commercial data format of CIBIL
Recommendation Potential Impact/opportunity
When CIRs on the same borrower are accessed by more then onespecified user, say, within a period of one month, an alert may beprovided by the CIC to all specified users who have drawn thereports, to avoid multiple financing to void fraudulent transactions
Enhance the system generating CIR, for this feature (MSOTool)?
Alerts on borrowers who are changing their address/office are to be indicated to other credit grantor as a Separate value added product, without disclosing the name of the CI
New application requirement?
Customization of reports to provide specific information like behaviour pattern of borrowers, as a separate value added product
New application requirement?
All CICs should be ISO27001:2013 certified for information security Certification audit by a reputed auditor
Best practices for CICs
Recommendations of RBI committee for data Formats for CIs
Recommendation Potential Impact/opportunity
Banks may be required within a reasonable period of, say,eighteen months, to arrange for capturing the required datafrom SHGs for reporting to CICs
Banks required to update their processes to capture info about members of SHGs
All banks should be required to share DPD data in their reporting under asset classification.
In the commercial segment, corporate identification number and credit history of the directors of the company (based on DIN number) also should be included.
Modify CIBIL commercial data format
There should be only one format for uploading and reverting reject data from the CIC as conversions/ reconversions between formats like Excel/TUDF/Notepad, etc., during the process of furnishing data create validation issues.
Standardisation of data format between CIs and CICs
The term ‘settled’ be suitably explained in the consumer CIR to avoid misinterpretation by users. Explanation by borrower may also be included if desired by the borrower
Changes in CIR format
DPDs should be captured by CIs for reporting to CICs Enhancements to the CBS/credit systems of CIs
Recommendations of RBI committee for data Formats for CIs
Recommendation Potential Impact/opportunity
CIs may include in their credit appraisal processes, provisions forobtaining credit reports from one or more CICs so that the creditdecisions are based on the information available in the system
Integrate CBS/credit appraisal systems withCICs to directly fetch CIRs into the system without manual intervention
CIBIL format to be taken as base for standardisation of data formats for consumer and commercial borrowers. High Mark’s format to be the base for MFI data reporting.
Advantages CIBIL and HM. Other CICs need to adopt these formats.
Additional fields in data formats as per annex 5 of the report. Changes in data formats to be incorporated in the data coming from CIs and CICs need to modify their data validation and upload procedures accordingly.
Detailed product classification, e.g., car loans, commercial vehicles and construction equipment vehicles, under auto loans could be furnished by CICs if so reported by the banks.
Change in CIR format
Business category/type, Mobile/Telephone number, State/Pin-code/Country enhance the value of the commercial bureau data and hence should be captured by the banks in their CBS.
Enhance banks’ CBSs
Recommendation Potential Impact/opportunity
Banks should mandate the use of CIRs in credit appraisal process Directly fetch CIRs into credit processing systems
Data Quality Index New application requirement at CIs
Best practices for CIs
Current Scenario
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Proposed New Scenario
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