Page 8 - BANKING FINANCE JULY 2016
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RBI CORNER
RESERVE BANNEKWS
RBI to keep reviewing asset quality RBI gets notice on sur-
The Reserve Bank of India (RBI) will set quality at lenders for the year that charge levied on cards
continue reviewing ended in March 2016.
the asset quality at The Delhi high court has issued no-
commercial lenders Gandhi said reviewing asset quality tice to the
this financial year, would continue even this year though Centre and
deputy governor R. he did not specify whether it would be Reserve Bank
Gandhi said, as part under the same process carried out in of India (RBI)
the last fiscal. over sur-
of "a continuous process" aimed at
avoiding an increase in levels of dis- "It is not that we will not assess the charges levied on debit and credit
tressed debt. quality of the assets of the banks here- card transactions.
after," Gandhi told in an interview as
The RBI late last year announced a part of the Reuters Financial Regula- A bench comprising of chief justice
more formal process of reviewing as- tion Summit in Mumbai. G. Rohini and Justice Jayant Nath
sought responses from the Centre
RBI allows up to 100% FDI in credit information firms and RBI about their guidelines on
the issue.
The Reserve Bank of India has allowed of ownership get to own a maximum
higher limits for foreign direct invest- of 49 per cent in a credit information The petition filed by Amit Sahni, a
ment (FDI) in credit information com- company. lawyer, said card and cash payments
panies. In a notification the RBI said in- are treated unequally due to the
vestors whose owner- A credit information company aggre- surcharge, which is "arbitrary and
ship is well diversified gates and analyses data against equality enshrined in the
may pick up to 100 per of individuals and busi- Constitution of India".
cent stake in a credit in- nesses and puts out a
formation company. credit score which is an It further adds that the surcharge
Such investors should indicator of creditwor- deters adoption of debit/credit
have an established thiness of that individual cards in India, where the bulk of
track record of running a or business. Higher the transactions are still in cash.
credit information bureau in a well
regulated environment, the RBI credit score, lower is the chance of The petition sought framing of ap-
added. default by that individual or business. propriate guidelines by RBI to pre-
Currently, India has four credit infor- vent the "discriminatory" surcharge.
Investors not well diversified in terms mation companies - CIBIL, Experian, The matter will be heard next on 19
Equifax and CRIF High Mark. August.
8 | 2016 | JULY | BANKING FINANCE
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