Systems in credit of banks

What are Credit Information Companies (CIC’s)?

CIC or Credit Information Company is an independent third party institution that
collects financial data regarding loans, credit cards and more about individuals and
shares it with its members. Banks, Non-Banking Financial institutions are usually the
customers of Credit Information Companies. The Credit Card Company collects financial
information about all these individuals and forms a credit report based on their financial
history. This credit report plays a very important role as it helps banks and other
financial institutions determine the creditworthiness of an individual applying for a loan
or credit card with them.
Credit Information Companies Regulation Act (CIC Act)
Credit Information Companies in India are licensed by the Reserve Bank of India and
governed by the Credit Information Companies Regulation Act, 2005 and various other
rules and regulations issued by the Reserve Bank of India. The CIC Act, 2005 is a
legislation that is enacted by the Government of India, in order to regulate the actions
of the Credit Card Companies in India. Following the CIC Act, 2005, the RBI and
the Government of India enacted the CIC Act, 2006.
List of Credit Information Companies In India
There are exactly four well known CICs in India as of now. Given below is a list of
CICs in India:
 CIBIL - The Credit Information Bureau Limited or CIBIL was founded in the year
2000. It is also the first Credit Information Company of India.CIBIL boasts of over
900 strong member base including public and private sector banks, non-banking
financial institutions and housing finance companies. CIBIL collects commercial and
consumer finance related data and forms a credit report. The company also issues a
 score derived from this data known as CIBIL score. The CIBIL score plays a very
important role when it comes to the approval of loan and credit cards. Any individual
can purchase a copy of their CIBIL report for a cost of Rs.550 and have access to
it within 3 days.
 Equifax - Equifax is a CIC that was founded in the year 1899 in Atlanta. It is one
of the oldest CIC as of now. Equifax got its ‘Certificate of Registration’ in India in
the year 2010 by the Reserve Bank of India. The company has a separate bureau
dedicated to address the growing lending and regulatory needs of the Microfinance
Institutions. The company charges a fee of Rs.138 for a basic credit report and a
fee of Rs.400 for credit score.
 Experian - Experian Credit Information Company was established as a joint venture
with several banks and financial institutions in India in the year in 2006. It was
named as one of the ‘World’s most innovative companies’ by Forbes magazine in the
year 2014. Experian prepares credit reports of individuals based on the information
provided by banks and other financial institutions about the financial history of the
individual. The company charges a fee of Rs.399 for a credit report and credit
score while a credit report will cost just Rs.138.
 High Mark Credit Information Services - This Company not only provides credit
reports to customers, but also caters to borrower segments such as SME,
commercial borrowers and retail borrowers. It was established in 2005 in Mumbai.
The company charges a nominal fee for a credit report.