14. Functions of a credit information company.—(1) A credit information company may engage in
any one or more of the following forms of business, namely:—
(a) to collect, process and collate information on trade, credit and financial standing of the
borrowers of the credit institution which is a member of the credit information company;
(b) to provide credit information to its specified users or to the specified users of any other credit
information company or to any other credit information company being its member;
(c) to provide credit scoring to its specified users or specified users of any other credit
information company or to other credit information companies being its members;
(d) to undertake research project;
(e) to undertake any other form of business which the Reserve Bank may, specify by regulations
as a form of business in which it is lawful for a credit information company to engage.
(2) No credit information company shall engage in any form of business other than those referred to
in sub-section (1).
10
(3) Any credit information company for the purposes of carrying on the business of credit information
may—
(a) register credit institutions and other credit information companies, at their option as its
member, subject to such terms and conditions as may be pre-determined and disclosed by such credit
information company;
(b) charge such reasonable amount of fees, as it may deem appropriate not exceeding the
maximum fee, as may be specified under section 27, for furnishing credit information to a specified
user;
(c) generally to do all such other acts and perform such other functions as are necessary to
facilitate proper conduct of its affairs, business and functions in accordance with the provisions of this
Act.
15. Credit Institution to be member of a credit information company.—(1) Every credit
institution in existence on the commencement of this Act, before the expiry of three months from such
commencement or within such extended period, as the Reserve Bank may allow on its application and
subject to being satisfied about the reason for extension, shall become member of at least one credit
information company.
(2) Every credit institution which comes into existence after the commencement of this Act, before
the expiry of three months from its coming into existence, or within such extended period, as the Reserve
Bank may allow on its application and subject to being satisfied about the reason for extension, shall
become member of at least one credit information company.
(3) A credit information company may, at its option, become member of another credit information
company.
(4) No credit information company shall refuse to register a credit institution or another credit
information company as its member without providing reasonable opportunity of being heard to such
credit institution or credit information company, whose application it proposes to reject and recording
reasons for such rejection and a copy of such order of rejection shall be forwarded to the Reserve Bank.
(5) A credit institution or credit information company aggrieved by the order of rejection of its
application for its registration as a member of a credit information company under sub-section (4) may
prefer an appeal to the Reserve Bank, within a period of thirty days from the date on which such order of
rejection was communicated to it:
Provided that the Reserve Bank may, if it is satisfied that the appellant was prevented by sufficient
cause from filing the appeal within the said period, allow it to be filed within a further period not
exceeding thirty days.
(6) On receipt of an appeal under sub-section (5), the Reserve Bank, after giving the appellant and
other concerned parties, an opportunity of being heard, pass such order as it deems fit.
(7) The decision of the Reserve Bank where an appeal has been preferred to it under sub-section (5)
shall be final and the order of the credit information company under sub-section (4) shall be final after the
expiry of the said period of thirty days where no appeal has been preferred under that sub-section to the
Reserve Bank.
(8) Every specified user shall be entitled to obtain credit information for its use from the credit
information company of which such specified user is a member.
16. Failure to become a member of a credit information company.—(1) Where a credit
institution—
(a) abstains from becoming a member of at least one credit information company; or
(b) at any time is not a member of any credit information company,
the Reserve Bank suo moto or on a complaint from a credit information company may, direct such credit
institution to take necessary steps within such time, as it may specify to become a member of a credit
information company.
11
(2) In case a credit institution fails to comply with the directions of the Reserve Bank under
sub-section (1), to become member of at least one credit information company, the Reserve Bank may,
without prejudice to the provisions of this Act, intimate such failure to any other authority for taking such
action as it may deem fit.
17. Collection and furnishing of credit information.—(1) A credit information company or any
person authorised in that behalf by the company may, by notice in writing, in such form, as may be
specified by regulations made by the Reserve Bank or as near thereto, require its members being credit
institution or credit information company, to furnish such credit information as it may deem necessary in
accordance with the provisions of this Act.
(2) Every credit institution which is member of the credit information company and every credit
information company which is a member of other credit information company shall, on receipt of notice
under sub-section (1), provide credit information to the credit information company of which it is a
member, within such period as may be specified in the notice.
(3) Every credit information company shall provide for such purpose, as may be specified by
regulations, the credit information received under sub-section (2), to its specified user on receipt of
request from him in accordance with the provisions of this Act and directions issued thereunder by the
Reserve Bank from time to time in this behalf.
(4) No credit information received under this Act,—
(a) by the credit information company, shall be disclosed to any person other than its specified
user; or
(b) by the specified user, shall be disclosed to any other person;
(c) by the credit information company or specified user, shall be disclosed for any other purpose
than as permitted or required by any other law for the time being in force.
18. Settlement of dispute.—(1) Notwithstanding anything contained in any law for the time being in
force, if any dispute arises amongst, credit information companies, credit institutions, borrowers and
clients on matters relating to business of credit information and for which no remedy has been provided
under this Act, such disputes shall be settled by conciliation or arbitration as provided in the Arbitration
and Conciliation Act, 1996 (26 of 1996), as if the parties to the dispute have consented in writing for
determination of such dispute by conciliation or arbitration and provisions of that Act shall apply
accordingly.
(2) Where a dispute has been referred to arbitration under sub-section (1), the same shall be settled or
decided,—
(a) by the arbitrator to be appointed by the Reserve Bank;
(b) within three months of making a reference by the parties to the dispute:
Provided that the arbitrator may, after recording the reasons therefor, extend the said period up to a
maximum period of six months:
Provided further that, in an appropriate case or cases, the Reserve Bank may, if it considers necessary
to do so (reasons to be recorded in writing), direct the parties to the dispute to appoint an arbitrator in
accordance with the provisions of the Arbitration and Conciliation Act, 1996 (26 of 1996), for settlement
of their dispute in accordance with the provisions of that Act.
(3) Save as otherwise provided under this Act, the provisions of the Arbitration and Conciliation Act,
1996 (26 of 1996) shall apply to all arbitration under this Act as if the proceedings for arbitration were
referred for settlement or decision under the provisions of the Arbitration and Conciliation Act, 1996.