The RBI has released eligibility criteria for entities to be categorised as ‘specified users’ under clause (j) of regulation 3 of the Credit Information Companies (CICs) (Amendment) Regulations, 2021. The criteria set out the requirements for the entities to become eligible as specified users of the said companies under the said clause.
The entity shall be a company incorporated in India or a statutory corporation established in India. The governing statute of the statutory corporation or memorandum of association of the company, as the case may be, should allow the business/activity of processing information for the support or benefit of credit institutions. In the case of a company, it should have a net worth of not less than Rs 20 million as per the latest audited balance sheet, and meet the requirement on a continuing basis. In the case of a corporation, it must be owned and controlled by resident Indian citizens or by an Indian corporation owned and controlled by resident Indian citizens.
The ownership of the company should be well diversified. In the case of a company, it should have at least 3 years of experience in running the business/activity of processing information for the support or benefit of credit institutions and should have a clean track record. The company, its promoter(s), or any of its directors should not have been convicted of any moral turpitude or economic offence in the past.
The entity should have a certification from a CISA-certified auditor that it has a robust and secure information technology system in place for preserving and protecting the data relating to credit information as per the provisions of the Credit Information Companies (Regulation) Act, 2005, and rules and regulations framed thereunder, and any other applicable regulations and guidelines in this regard. Entities meeting the above-mentioned criteria may apply to the Credit Information Companies (CICs) to obtain the membership of CICs as a specified user. However, this condition shall not apply to the holding of shares or voting rights by the central government/state government/central or state PSUs.
