9. Management of credit information company.—(1) Notwithstanding anything contained in any
law for the time being in force, or in any contract to the contrary, every credit information company in
existence on the commencement of this Act, or which comes into existence thereafter, shall have one of
its directors, who may be appointed on whole-time or on a part-time basis as chairperson of its board, and
where he is appointed on whole-time basis as chairperson of its board, he shall be entrusted with the
management of the whole of the affairs of the credit information company:
Provided that the chairperson of the board of the credit information company shall exercise his
powers subject to the superintendence, control and directions of the board.
(2) Where a chairperson is appointed on a part-time basis, the management of whole of the affairs of
the credit information company shall be entrusted to a managing director or, a whole-time director by
whatever name called, who shall exercise his powers subject to the superintendence, control and
directions of the board.
(3) In addition to the chairperson or managing director or whole-time director, by whatever name
called, the board of directors shall consist of not less than fifty per cent. directors who shall be persons
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having special knowledge in, or practical experience of, the matters relating to public administration, law,
banking, finance, accountancy, management or information technology.
(4) In discharging its functions, the board shall act on business principles and shall have due regard to
the interest of its specified users, credit institutions or the clients or borrowers of credit institutions.
(5) Where the Reserve Bank is satisfied that it is in the public interest or in the interest of banking
policy or credit system of the country, or for preventing the affairs of any credit information company
being managed in a manner detrimental to the interest of banking policy or credit institutions or borrowers
or clients or for securing the proper management of any credit information company, it is necessary so to
do, the Reserve Bank may, for reasons to be recorded in writing, by order published in the Official
Gazette, supersede the board of such company, for such period not exceeding six months, as may be
specified in the order and which may be extended from time to time, so, however, that the total period
shall not exceed twelve months:
Provided that before making any such order, the Reserve Bank shall give a reasonable opportunity to
the board of such credit information company to make representation against the proposed supersession
and shall consider the representation, if any, of the board.
(6) The Reserve Bank may, on supersession of the board of a credit information company under subsection (5), appoint an Administrator for such period and on such salary and other terms and conditions as
it may determine.
(7) The Reserve Bank may issue such directions to the Administrator as it may deem appropriate and
the Administrator shall be bound to follow such directions.
(8) Upon making of the order under sub-section (5), superseding the board of a credit information
company—
(a) the chairperson, managing director and other directors of such credit information company
shall, as from the date of supersession, vacate their offices as such;
(b) all the powers, functions and duties which may, by or under the provisions of the Companies
Act, 1956 (1 of 1956) or this Act or any other law for the time being in force, be exercised or
discharged, by or on behalf of the board of such credit information company, or by a resolution
passed in general meeting of that company, shall, until the reconstitution of its board under
sub-section (10), be exercised and discharged by the Administrator appointed by the Reserve Bank
under sub-section (6):
Provided that the powers exercised by the Administrator shall be valid notwithstanding that such
powers are exercisable by a resolution passed in the general meeting of such credit information company.
(9) The salary and allowances payable to the Administrator and staff assisting the Administrator shall
be borne by the credit information company.
(10) On and before the expiration of two months before expiry of the period of supersession
mentioned in the order of the Reserve Bank issued under sub-section (5), the Administrator of the credit
information company, shall call a general meeting of the credit information company to elect new
directors and reconstitute its board and any person who had vacated his office under clause (a) of
sub-section (8), shall not be deemed to be disqualified for re-appointment.
(11) Notwithstanding anything contained in any law for the time being in force or in any contract or
the memorandum or articles of association, of the credit information company, on the removal of a person
from office under this section, that person shall not be entitled to claim any compensation for the loss or
termination of office.
10. Power of Reserve Bank to determine policy.—Where the Reserve Bank is satisfied that it is
necessary or expedient in the public interest or in the interest of specified users or in the interest of credit
information companies or credit institutions or clients or borrowers so to do, it may determine the policy
in relation to functioning of credit information companies or credit institutions or specified users
generally or in particular and when the policy has been so determined all credit information companies,
credit institutions and specified users, as the case may be, shall be bound to follow the policy as so
determined.
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11. Power of Reserve Bank to give directions.—(1) Where the Reserve Bank is satisfied that,—
(a) in the public interest; or
(b) in the interest of credit institutions; or
(c) in the interest of specified users; or
(d) in the interest of banking policy; or
(e) to prevent the affairs of any credit information company being conducted in a manner
detrimental to the interests of its specified users or in a manner prejudicial to the interests of credit
institutions or borrowers or clients; or
(f) to secure the proper management of credit information companies generally,
it is necessary to issue directions to credit information companies or credit institutions or specified users
generally or to any credit information company or credit institution or specified user in particular, it may,
from time to time, issue such directions as it deems fit, and such credit information companies, credit
institutions and specified users or credit information company, credit institution, and specified user, as the
case may be, shall be bound to comply with such directions.
(2) The Reserve Bank may, on representation made to it or on its own motion, modify or cancel any
direction issued under sub-section (1), and the Reserve Bank, in so modifying or cancelling any direction,
may impose such conditions as it thinks fit, subject to which the modification or cancellation shall have
effect.
(3) The Reserve Bank may, at any time, if it is satisfied that in the public interest or in the interest of a
credit information company or its members, it is necessary so to do, by order in writing and on such terms
and conditions as may be specified therein,—
(a) require such credit information company to call a meeting of its directors for the purpose of
considering any matter relating to or arising out of the affairs of the credit information company;
(b) depute one or more of its officers to watch the proceedings at any meeting of the board of the
credit information company or of any committee or of any other body constituted by it and require the
credit information company to give an opportunity to the officers so deputed to be heard at such
meetings and also require such officers to send a report of such proceedings to the Reserve Bank;
(c) require the board of the credit information company or of any committee or any other body
constituted by it to give in writing to any officer deputed by the Reserve Bank in this behalf at his
usual address all notices of, and other communications relating to, any meeting of the board,
committee or other body constituted by it;
(d) appoint one or more of its officers to observe the manner in which the affairs of the credit
information company or of its offices or branches are being conducted and make a report thereon;
(e) require the credit information company to make, within such time as may be specified in the
order, such changes in the management as the Reserve Bank may consider necessary.
(4) The Reserve Bank may, at any time, direct any credit information company to furnish it within
such time as may be specified by the Reserve Bank, such statements and information relating to the
business or affairs of the credit information company as the Reserve Bank may consider necessary or
expedient to obtain for the purpose of this Act.
12. Inspection of credit information company, credit institution and specified
user.—(1) Notwithstanding anything to the contrary contained in section 235 of the Companies Act,
1956 (1 of 1956), the Reserve Bank, at any time, may and on being directed so to do by the Central
Government shall, cause an inspection to be made, by one or more of its officers or through such other
persons or agency as the Reserve Bank may determine, of any credit information company or credit
institution or specified user and their books and accounts; and the Reserve Bank shall supply to the credit
information company or credit institution or specified user, as the case may be, a copy of its report on
such inspection.
(2) It shall be the duty of every director or other officer or employee of the credit information
company, credit institution and specified user to produce to any officer or person or agency, as the case
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may be, making an inspection under sub-section (1) all such books, accounts and other documents in his
custody or power and to furnish him with any statement and information relating to the affairs of such
credit information company, credit institution and specified user, as the said officer or person or agency
may require of him within such time as the said officer or person or agency may specify.
(3) Any officer of the Reserve Bank or person or an agency making an inspection under
sub-section (1) may examine on oath any director or other officer or employee of the credit information
company, credit institution and specified user, in relation to their business, and may administer an oath
accordingly.
(4) The expenses of, or incidental to, the inspection under sub-section (1) by any person or an agency
referred to in sub-section (1) shall be borne by the concerned credit information company or credit institution or specified user, as the case may be.