RBI Notifies Data Format for Furnishing of Credit Information

Recently, the Reserve Bank of India (RBI), by way of Notification No RBI/2020-21/ 106/ DoR.FIN.REC.46/20.16.056/2020 – 21, issued on 12.03.2021, has notified a Data Format for Furnishing of Credit Information to CICs (Credit Information Companies). The said notification is in extension to RBI’s Circular DBOD.No.CID.BC.127/20.16.056/2013 – 14, dated 27.96.2014, which dealt with setting out the UCRF (Uniform Credit Reporting Format).

Entities Addressed by Reserve Bank of India

The entities addressed by the Apex Bank in the Notification concerning Data Format for Furnishing of Credit Information are as follows:

• All the Commercial Banks, inclusive of Small Finance Banks, Regional Rural Banks, Local Area Banks, but not Payment Banks;
• All the Primary Urban Cooperative Banks/ State Cooperative Banks/ District Central Cooperative Banks;
• All the India Financial Institutions, such as NABARD, EXIM Bank, NHB, and SIDBI;
• All the Non Banking Financial Companies, inclusive of Housing Finance Companies;
• All the Credit Information Companies;

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Key Provisions of the RBI Issued Notification

The Uniform Credit Reporting Format or UCRF has two Annexures, out of which the annexure I contains two data credit reporting formats for the Consumer Bureau and Commercial Bureau, whereas the annexure II contains the credit reporting format for MFIs, i.e., Micro Finance Institutions segment.

However, the key modifications made by the Apex Bank in these formats are as follows:

Consumer Bureau

In the Consumer Bureau Format, the label of the field “Written off and Settled status” is modified as the “Credit Facility Status”. Also, the same will nowhave a new catalogue value, i.e., the “Restructured due to COVID-19”.

Commercial Bureau

In the Commercial Bureau, the existing field named “Major Reasons for Restructuring” will have a new catalogue value as well, i.e., “Restructured due to COVID – 19”.

Micro Finance Institutions Bureau

In this segment also the existing field named “Account Status” will now have a new catalogue value, i.e., “Restructured due to COVID – 19”.

Reasons for Making Modifications in Data Format for Furnishing of Credit Information

The main reason behind the modifications was to allow the banks/ All India Financial Institutions/NBFCs to report their information relating to the restructured loans to Credit Information Companies as provided in the circular DOR.No.BP.BC.3/21.04.048/2020-21, dated 06.08.2020, on the Resolution Framework for the COVID-19 related stress.

Also, it shall be noted that all the Credit Information Companies need to implement the required modifications to their mechanisms within a period of two months, starting from the date of notification.

Conclusion

In a nutshell, the revised format prescribed by RBI through Notification No RBI/ 2020 – 21/ 106/ DoR.FIN.REC.46/ 20.16.056/ 2020 – 21, issued on 12.03.2021,requires all the Credit Information Companies to specifically identify the loans being restructured under the COVID – 19 relief scheme. Further, CICs need to implement the required changes within two months from the date of notification.

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Official RBI Notification on Data Format for Furnishing of Credit Information