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RBI lays down eligibility norms for entities tapping credit bureau data

RBI lays down eligibility norms for entities tapping credit bureau data

The Reserve Bank of India (RBI) on Wednesday laid down eligibility norms for entities tapping into data from credit information companies (CICs), or credit bureaus. The rules say a company must be owned and controlled by resident Indian citizens to become a specified user with a credit bureau, amid reports of lending apps with Chinese links operating in India.

In order to be eligible as a ‘specified user’ under the Credit Information Companies (Amendment) Regulations, 2021, an entity must 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 should allow the business or activity of processing of information for the support or benefit of credit institutions, the norms said.

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