Page 60 - Banking Finance September 2024

RBI CIRCULAR

21, 2019, and other related circulars1 (collectively re- collected/maintained by them updated regularly on a
ferred to as “e-mandate framework”). The e-mandate monthly basis or at such shorter intervals as mutually
framework prescribed, inter alia, that the issuer shall agreed upon between the CI and the CIC. Considering
send a pre-debit notification to the customer at least the faster turnaround time in credit underwriting
24 hours prior to the actual charge / debit to the ac- through digital processes, it is imperative that the
count. Credit Information Reports (CIRs) provided by CICs re-
flect a more current information, enabling lenders to
2. Reference is also drawn to the Statement on Develop-
make informed credit decisions.
mental and Regulatory Policies dated June 07, 2024,
wherein it was announced that auto-replenishment of 2. Accordingly, in exercise of the powers conferred by sub-
balances in FASTag and National Common Mobility Card section (1) of section 11 of the Credit Information Com-
(NCMC), which are recurring in nature but without any panies (Regulation) Act, 2005 (CICRA, 2005), it is di-
fixed periodicity, would be facilitated under the e-man- rected that CICs and CIs shall keep the credit informa-
date framework. tion collected/maintained by them updated regularly
on a fortnightly basis (i.e., as on 15th and last day of
3. It has been decided to include auto-replenishment of
the respective month) or at such shorter intervals as
FASTag and NCMC, as and when the balance falls be-
mutually agreed upon between the CI and the CIC. The
low a threshold set by the customer, under the e-man-
fortnightly submission of credit information by CIs to
date framework. Payments for auto-replenishment,
CICs shall be ensured within seven (7) calendar days of
since they are recurring in nature but without any fixed
the relevant reporting fortnight. Further, as directed
periodicity, will be exempt from the requirement of pre-
vide circular DoR.FIN.REC.49/20.16.003/2023-24 dated
debit notification.
October 26, 2023, CICs are required to ingest credit
4. All other instructions provided under the e-mandate information data received from the CIs, as per their
framework shall continue to remain applicable. data acceptance rules, within seven (7) calendar days
5. This circular is issued under Section 18 read with Sec- of its receipt from the CIs. This is now being revised to
tion 10 (2) of the Payment and Settlement Systems Act, five (5) calendar days of its receipt.
2007 (Act 51 of 2007), and shall come into effect im- 3. CICs shall provide a list of CIs which are not adhering
mediately. to the fortnightly data submission timelines to Depart-
ment of Supervision, Reserve Bank of India, Central
Frequency of reporting of credit informa- Office at half yearly intervals (as on March 31 and Sep-
tember 30 each year) for information and monitoring
tion by Credit Institutions to Credit Infor- purposes.

mation Companies 4. These instructions shall be effective from January 1,
August 08, 2024 2025. However, the CIs and CICs are encouraged to
give effect to these instructions as expeditiously as fea-
sible but not later than January 1, 2025.
1. Please refer to the circular DBR. No. CID. BC. 60/
20.16.056/2014-15 dated January 15, 2015, inter-alia, 5. CICs and CIs that contravene or default in adherence
directing the credit information companies (CICs) and to the above directions shall be liable for penal action
credit institutions (CIs) to keep the credit information as per the provisions of CICRA, 2005.

54 | 2024 | SEPTEMBER | BANKING FINANCE