Banks should furnish credit info to customers: RBI


Banks should furnish credit info to customers: RBI
Bangalore: As a relief to bank customers, who had harrowing experience to receive their credit reports, banks will now have to provide credit information on request. In its statement to the banks, the Reserve Bank of India (RBI) has asked all the banks and financial institutions to provide credit information to the customer when they need it. RBI has been receiving complaints, including under RTI Act that customers are unable to get their own credit report from banks. Under the Credit Information Companies Act, banks are required to build a database and be in readiness for effective exchange of credit information without any loss of time. Credit report is a record of an individual's or company's past borrowing and repaying, including information about late payments and bankruptcy. "Banks and financial institutions are advised to ensure strict compliance with the provisions of the Credit Information Companies (Regulation) Act, 2005 as well as the rules and regulations framed," the central bank said in a statement. According to the Act, any person, who applies for credit facility from any financial institution, can request it to furnish a copy of the credit information by paying Rs 50.