Page 36 - Banking Finance September 2019

ARTICLE

Rectification of Credit Score or Credit

Report
The RBI has asked all Credit Information Bureaus to make
available credit score for individuals for free once a year. If
you find any discrepancy in any of the fields of the report or
your score could vary, a dispute can be raised online using
the online dispute form or by writing to CIBIL.

Sometime, there may be mis-reporting of the fact by lending
institutions due to any technical or other issues which may
affect the Credit Score of an individual. It is in the interest of
the individuals to get their credit score rectified in time. The
Credit Information Companies have made the process of
reporting and rectifying the CIR in case of mis-reporting of
1. Pay all Your loan repayment (EMIs) and credit Card bills the facts. Step-by-Step process is given on the websites of CICs
well in time without fail and online dispute form may be sent through e-mail to CICs.

2. Avoid taking multiple Credit Cards, apply for new credit Total dispute resolution time fixed for it is 30 days.
cards only if it is required and that you can manage Conclusion
smoothly
It is needless to say that an excellent Credit Score can help in
3. Do not overuse the available credit limit, use only upto many ways to an individual. The Credit Information report has
30% to 40% of credit card limit
become a necessary document for Banks and Financing
4. Keep long and stable credit histories as it helps in Institutions as it provides an insight about a prospective
increasing your credit score borrower and accordingly it helps in taking credit decision. It
5. Check credit report and credit score regularly and if you is in the interest of a person to become financially disciplined
find an error, take step to get it rectify mistakes of Credit and manage pay all his/her financial obligations in time so that
Report at earliest. credit score is always maintained in good shape.
6. Get score building loans like Home Loan, Mortgage (Disclaimer: Views and opinions expressed in the article are
Loan or Secured Loans etc. of mine and not of SBI.)
Revised regulations by RBI likely for housing finance companies

The RBI has recently said that housing finance companies (HFCs) will be treated as a category of non-banks. It added
that the RBI will release a revised regulatory framework for these entities. The move comes at the backdrop of the
amendment of Finance Act, 2019 that amended the National Housing Bank Act, 1987, conferring certain powers for
regulation of HFCs with the RBI. “HFCs will henceforth be treated as one of the categories of non-banking financial
companies (NBFCs) for regulatory purposes. Reserve Bank of India will carry out a review of the extant regulatory
framework applicable to HFCs and come out with revised regulations in due course," the central bank said.
Meanwhile, HFCs will continue to comply with the directions issued by the National Housing Bank (NHB) till the RBI
issues a revised framework. Moreover, the NHB will continue to carry out supervision of HFCs and they will continue
to submit various returns to NHB. The grievance redressal mechanism with regard to HFCs will also continue to be
with the NHB. “A housing finance institution, which is a company, desirous of making an application for registration
under sub-section 2 of section 29A of the National Housing Bank Act, 1987 (as amended by Act 23 of 2019) may ap-
proach the Department of Non-Banking Regulation, Reserve Bank of India," the RBI said.
During the Budget, Finance Minister Nirmala Sitharaman had proposed an amendment to Section 45-IA of the RBI
Act 1934 in the Finance Bill. The amended Act empowers the central bank to supersede the board of NBFCs (other
than those owned by the government) and enable resolution of financially troubled NBFCs through merger or splitting
them into viable and non-viable units called bridge institutions.

36 | 2019 | SEPTEMBER | BANKING FINANCE