3. Prohibition to commence or carry on business of credit information.—Save as otherwise
provided in this Act, no company shall commence or carry on the business of credit information without
obtaining a certificate of registration from the Reserve Bank under this Act.
4. Application for registration.—(1) Every company which intends to commence the business of
credit information shall make an application for registration to the Reserve Bank in such form and manner
as may be specified by regulations.
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(2) Every credit information company, in existence on the commencement of this Act, before the
expiry of six months from such commencement, shall apply in writing to the Reserve Bank for obtaining
a certificate of registration under this Act:
Provided that in the case of a credit information company in existence on the commencement of this
Act, nothing in section 3 shall be deemed to prohibit such credit information company from carrying on
the business of a credit information company, until it is granted a certificate of registration or is by notice
in writing informed by the Reserve Bank that a certificate of registration cannot be granted to it.
5. Grant of certificate of registration.—(1) The Reserve Bank may, for the purpose of considering
the application of a company for grant of a certificate of registration to commence or carry on the
business of credit information, require to be satisfied, by an inspection of records or books of such
company or otherwise that the following conditions are fulfilled, namely:—
(a) that the applicant company has minimum capital structure referred to in section 8;
(b) that the general character of the management or the proposed management of the applicant
company shall not be prejudicial to the interest of its specified users, clients or borrowers, or other
credit information companies;
(c) that any other condition, the fulfilment of which in the opinion of the Reserve Bank, shall be
necessary to ensure that the commencement or carrying on of the business of credit information by
the applicant company shall not be detrimental or prejudicial to the public interest or banking policy
or credit system or its specified users or clients or borrowers or other credit information companies or
others who would provide credit information to the credit information companies.
(2) The Reserve Bank may, after being satisfied that the conditions as referred to in sub-section (1)
are fulfilled, grant a certificate of registration to the applicant company to commence or carry on the
business of credit information, subject to such conditions which it may consider fit to impose and if the
company fails to fulfil any of such conditions or any of the provisions of this Act, the application of the
company shall be rejected:
Provided that no application shall be rejected unless the applicant has been given an opportunity of
being heard.
(3) The Reserve Bank may, having regard to the available business of credit information, the potential
and scope for expansion of existing credit information companies and other relevant factors, determine
the total number of the credit information companies which may be granted the certificates of registration
for carrying on the business of credit information:
Provided that the total number of such credit information companies so determined may, on being
satisfied by the Reserve Bank, that there is change in available business of credit information, potential
and scope for expansion of existing credit information companies and other relevant factors relating
thereto, be reviewed by the Reserve Bank.
6. Power of Reserve Bank to cancel certificate of registration.—(1) The Reserve Bank may cancel
a certificate of registration granted to a credit information company under sub-section (2) of section 5 if
such company,—
(i) ceases to carry on the business of credit information; or
(ii) has failed to comply with any of the conditions subject to which the certificate of registration
has been granted to it; or
(iii) at any time fails to fulfil any of the conditions referred to in sub-clauses (a) to (c) of
sub-section (1) or sub-section (2) of section 5; or
(iv) fails—
(a) to comply with the provisions of any law for the time being in force or any direction
issued by the Reserve Bank under the provisions of this Act; or
(b) to submit or offer for inspection its books of account and other relevant documents when
so demanded by the officers, persons or agency referred to in sub-section (1) of section 12.
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(2) Before cancelling the certificate of registration granted to a credit information company under this
section on the ground that the company has failed to comply with the conditions specified in clauses (a) to
(c) of sub-section (1) or sub-section (2) of section 5 or the provisions of any other law for the time being
in force or directions issued under this Act, the Reserve Bank, shall grant time to such company on such
terms as the Reserve Bank may deem appropriate for taking necessary steps to comply with such
directions or provisions or fulfilment of such conditions, within such time:
Provided that if the Reserve Bank is of the opinion that the delay in cancelling the certificate of
registration of such company shall be prejudicial or detrimental to the public interest or banking policy or
credit system or borrowers or other credit information companies, the Reserve Bank may cancel the
certificate of registration without granting time as provided in sub-section (2).
(3) No order of cancellation of certificate of registration, granted to a credit information company,
shall be made by the Reserve Bank unless such company has been given a reasonable opportunity of
being heard.
7. Appeal against order of Reserve Bank.—(1) A credit information company aggrieved by the
order of rejection of an application for grant of certificate of registration under section 5 or cancellation of
certificate of registration under section 6, may prefer an appeal to the Central Government or any other
authority or tribunal which may be designated by rules made by the Central Government, within a period
of thirty days from the date on which such order of rejection or cancellation, as the case may be, is
communicated to the credit information company.
(2) The decision of the Central Government or the authority or tribunal referred to in sub-section (1)
where an appeal has been preferred to it under sub-section (1), or of these Reserve Bank where no such
appeal has been preferred, shall be final:
Provided that before making any order of rejection of an appeal, the applicant company or the credit
information company, as the case may be, shall be given a reasonable opportunity of being heard.
8. Requirement as to minimum capital.—(1) The authorised capital of every credit information
company shall be a minimum of thirty crores:
Provided that the Reserve Bank may, by notification, increase the minimum amount of authorised
capital to any amount not exceeding fifty crores.
(2) The issued capital of every credit information company shall not be less than twenty crores:
Provided that the Reserve Bank may, by notification, increase the issued capital to any amount not
exceeding the minimum amount of authorised capital as referred to in sub-section (1).
(3) The minimum paid up capital of every credit information company at any time shall not be less
than seventy-five per cent. of the issued capital.