Mumbai, June 1 Credit Information Bureau of India Ltd (Cibil), which collects data on defaulting bank customers, is gearing up to play a new role—maintaining data on fraudulent deals.
The Indian Banks’ Association has asked Cibil to set up a pilot project called Credit Information Company (CIC) for such a centre in association with Trans Union. The IBA decided this at its annual general body meeting last Monday.
Trans Union already runs a similar bureau on retail in the US and holds a10% stake in Cibil.
Ten banks are likely to join the pilot project for forming a centre on fraud data. Some of the banks that will be part of the project include State Bank of India, ICICI Bank, Bank of Baroda and Union Bank of India. Confirming the development to FE, K Unnikrishnan, deputy CEO of the association, said, "We are now in the process of communicating to the 10 banks that will be joining the pilot project."
The remaining banks would join only on the successful completion of the pilot, he added. “We wanted to have a mechanism on the issue and when Cibil approached us, we asked them to help us develop it,'' he explained.
Cibil managing director Arun Thukral said, "Although we are already successfully running the country’s sole credit information bureau for seven years, we don’t have any central database on frauds. The initiative will help us a lot in that direction.''
Apart from Cibil, there are a few more Companies aspiring to run the proposed CIC. They include UK’s Experian and the premier rating agency, Crisil. Experian has formed an Indian entity, Experian India, in which it will have a 49% stake.
Vikram Narayan, Experian’s managing director and country manager for India, said, "We have applied for a licence from the RBI. We plan to set up a credit bureau with Equifax in the country similar to Cibil. Crisil, too, is keen and has also applied for a licence. “We are awaiting the RBI’s response,'' confirmed, Roopa Kudva, MD & CEO, Crisil Ratings .
Announcing the annual monetary policy a month ago, RBI governor YV Reddy said, "The central bank will review all the 13 applications received by it for the CIC and will issue a licence to the eligible Companies.'' A high-level advisory committee headed by RH Patil will be clearing all these new proposals for CIC by June-end. The Credit Information Act, 2005, allows the country to have more than one agency in the credit bureau space....
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