Reserve Bank Mandates Full CIC Membership for ARCs

The Reserve Bank has directed Asset Reconstruction Companies to join all credit information companies and submit data in a specific format, aligning with bank and NBFC guidelines. This move aims to maintain borrowers' credit history post-loan transfer. Compliance is required by January 1, 2025.

The Reserve Bank of India has announced a significant policy change requiring Asset Reconstruction Companies (ARCs) to join all credit information companies (CICs) in the country and submit necessary data in a standardized format.

This directive aligns ARCs with existing guidelines for banks and Non-Banking Financial Companies (NBFCs) and is aimed at ensuring the consistent tracking of borrowers' credit histories following loan transfers.

ARCs must comply with the revised guidelines by January 1, 2025, while credit institutions will continue to report borrower information to CICs until the credit institution winds up.

(With inputs from agencies.)