RBI mandates ARCs to become member of credit bureau

A day after it tightened the norms for asset reconstruction companies (ARCs), the Reserve Bank today asked them to become a member of at least one credit information company (CIC), and periodically report the data on the borrowers to them.
The banking watchdog said the securitisation companies (SCs) and asset reconstruction companies (ARCs) should put up details of suit filed about accounts of wilful defaulters on their website on a quarterly basis.
"Each SC/RC is required to become a member of at least one credit information company and provide to the CIC periodically accurate data/history of the borrowers," it said.

These notifications come following a detailed set of changes in ARCs' functioning the RBI issued yesterday, which include tripling of the investment they make in security receipts to 15 per cent from the earlier 5 per cent.
It also included a provision to ask banks for a minimum time of one or two weeks for doing a due diligence on a portfolio.
The RBI said it posted the notification after a lot of stakeholders sought clarifications regarding the matter.